Pension Fund Transfer
QROPS advice
If you're living abroad and have money in a UK pension fund, you may be eligible to transfer your pension money into a pension fund outside the UK. This type of pension fund transfer can help you access your pension earlier and reduce the amount of money that taxes take out of your retirement fund.
In order to transfer your pension fund, you will have to transfer it into what is known as a Qualifying Recognised Overseas Pension Scheme, or QROPS. A QROPS is a pension scheme which is recognised by Her Majesty's Revenue and Customs (HMRC) as meeting the legal criteria for transfers of this type, which include restrictions on the country in which the scheme is registered as well as on the types of regulations governing it. HMRC publishes and regularly updates a list of eligible pension schemes.
A pension fund transfer has several advantages. Overseas pensions are often taxed at a lower rate than pensions in the UK, and may have fewer restrictions on how and when you can access your pension. The number of available pension schemes -- HMRC currently lists nearly 3,000 eligible funds -- means that you can select the pension scheme that best suits your financial needs.
Another advantage of an overseas pension fund transfer arises from an unusual loophole in the legislation. Although you can only transfer your pension to an overseas pension scheme if you are living permanently abroad, the pension scheme you use does not have to based in the country in which you reside. This adds further options to your search for the scheme that's right for you.
Putting your money in an overseas pension fund can save you money on taxes, protect your pension from death duties, make it easier to access your pension, and even help your pension grow at a faster rate. If you're living permanently abroad, a pension fund transfer could be the right choice for you and your loved ones.
In order to transfer your pension fund, you will have to transfer it into what is known as a Qualifying Recognised Overseas Pension Scheme, or QROPS. A QROPS is a pension scheme which is recognised by Her Majesty's Revenue and Customs (HMRC) as meeting the legal criteria for transfers of this type, which include restrictions on the country in which the scheme is registered as well as on the types of regulations governing it. HMRC publishes and regularly updates a list of eligible pension schemes.
A pension fund transfer has several advantages. Overseas pensions are often taxed at a lower rate than pensions in the UK, and may have fewer restrictions on how and when you can access your pension. The number of available pension schemes -- HMRC currently lists nearly 3,000 eligible funds -- means that you can select the pension scheme that best suits your financial needs.
Another advantage of an overseas pension fund transfer arises from an unusual loophole in the legislation. Although you can only transfer your pension to an overseas pension scheme if you are living permanently abroad, the pension scheme you use does not have to based in the country in which you reside. This adds further options to your search for the scheme that's right for you.
Putting your money in an overseas pension fund can save you money on taxes, protect your pension from death duties, make it easier to access your pension, and even help your pension grow at a faster rate. If you're living permanently abroad, a pension fund transfer could be the right choice for you and your loved ones.
For help and advice on a pension fund transfer speak to our British FSA regulated experts: Info@cyprus-mortgages.co.uk