QROPS were launched in April 2006, as part of new legislation with the objective of simplifying pensions. It allows non-UK residents to transfer their UK private/corporate pension offshore, tax free. A QROPS is an overseas pension scheme that meets the requirements set by HM Revenue and Customs (HMRC) to receive the transfer of UK Pension Benefits.
Who qualifies to take advantage of QROPS?
Typically a UK expatriate who has emigrated or retired abroad can take advantage of the QROPS legislation. But it can also apply to foreign residents who have worked in the UK and built up a pension fund within a scheme approved by HMRC in the UK.
Some of the benefits of QROPS include:
No requirement to purchase an annuity.
Greater flexibility and wider choice of investments
Access up to 30% of tax free lump sum.
Receive your pension income with zero tax deducted by the UK Government.
Remaining pension assets can be left in whole to your chosen beneficiaries free of Inheritance tax.