QROPS FAQ

 

Who are the schemes designed for?

Individuals who have in the past built up UK pensions but are no longer UK-resident.
e.g. British expatriates.
e.g. non-doms who have worked in UK in the past and accumulated UK pension funds.

How long does it take to transfer into a QROPS?

1 to 3 months.

Is there a minimum amount that I can transfer into a QROPS?

No there is not, however there will be transfer costs and ongoing costs associated with running a
QROPS, so it may not be economically viable for a transfer into a QROPS if the pension pot to be
transferred is a low amount. However solutions can be tailored to individual needs therefore it is worth
consulting a QROPS expert to establish if it is viable for you.

When I receive payments from my QROPS will this be reported to the HMRC in the UK?

If you have been non resident for five complete years QROPS providers are not required to report
payment to HMRC.

Does the five year period begin from when I become non resident or from when I transfer my pension into a QROPS?

The five year period begins from the time that an individual becomes non resident.

Will tax be deducted at source?

This depends on the location of the QROPS scheme that you choose. Eg if you opt for a Guernsey
QROPS no tax will be deducted at source.

What inheritance tax will have to be paid?

Generally the amount of Inheritance tax that would be payable in relation to funds from a QROPS could
be considerably lower compared to inheritance tax that currently applies to UK pensions. It could be
zero. To gain an understanding of how this would affect you professional advice should be sought.

Do you recommend schemes that are taxed at source?

We tend not to.

What tax will I pay when I access funds from my QROPS?

This depends where you are resident when you receive payments. Tax treatment of any income
depends on residency.

I have several UK pensions can I transfer all of my UK pensions into one QROPS?

Yes you can transfer and consolidate all of your UK pensions into one QROPS plan, with some
exceptions.

Can I transfer my UK state pension to QROPS?

No.

If I am already receiving a pension from my UK final salary scheme from my previous employer. Can I transfer this to a QROPS?

No unfortunately not.

What is the maximum lump sum that I can take?

The maximum is 30% of your QROPS pension pot. This may vary slightly from one jurisdiction to
another and usually varies from 25% to 30%.

If I take my lump sum do I have to immediately also start to draw down a regular pension?

No. You can take your lump sum and can chose to defer regular pension payments to a later date.

On transferred funds what is the age limit for immediate access?

Generally, someone who has transferred their rights to an overseas scheme will have to take their
benefits no earlier than the normal minimum pension age 55.

 

We strongly recommend speaking to one of our QROPS Advice specialists as everybody’s circumstances our different…