Contact

News & Insights

How to Decode and Check a QROPS

What is a QROPS?

QROPS” means ‘qualifying recognised overseas pension scheme’. The final two letters in the acronym are self-explanatory. As for the first three, they denote the following:

  • “Qualifying”: This means that the scheme meets the requirements as laid down by the United Kingdom and HM Revenue and Customs (HMRC).
  • “Recognised”: This means that HMRC officially recognises the scheme as eligible to receive transfers from registered UK pension schemes.
  • Overseas: This means that the pension scheme is registered in a country outside of the UK.

Who can make an expat QROPS transfer?

If you are a member of either a UK-based Defined Contribution Scheme (sometimes referred to as a ‘money purchase’ scheme) or a Defined Benefit Scheme (sometimes referred to as a ‘Final Salary Scheme) then a QROPS is available to you. However, not everyone is a suitable candidate for a QROPS transfer – for example, some savers might be better off remaining in their existing scheme, while others might be better off transferring into a bespoke Self-invested Personal Pension (SIPP) or investing in a totally different vehicle such as a UCITS-regulated portfolio.

Furthermore, under the UK Pension Schemes Act 2015 all defined benefit scheme members with “safeguarded benefits” worth £30,000 or more must receive expat pension transfer advice from a suitably qualified and independent specialist whose work is authorised and regulated by the Financial Conduct Authority (FCA).

How to check if a QROPS is both qualifying and recognised

HMRC carries a list of providers offering qualifying recognised overseas pension schemes. You can find the list here.

It’s worth noting that since March 2017 certain QROPS transfers will attract a 25% tax charge, known as the overseas transfer charge, which is levied by HMRC, so it’s always worth seeking licensed, regulated and impartial advice before going ahead with any type of pension transfer to see if it will, indeed, be in your best interests.

Why transfer a pension

A pension transfer can help guard against unwelcome currency exchange fluctuations and can provide welcome simplification to your wealth management strategy, but any pension transfer you undertake should always offer you more flexibility and choice in respect of your pension savings.

Whether you are already an expat or are on the cusp of moving abroad, the expat pension transfer specialists at Blacktower Financial Management can help you decide whether it would be in your interests to transfer your pension to a QROPS or whether a SIPP or alternative investment vehicle would be more suitable.

If you would like more information about QROPS and how they compare to other types of expat pension transfer, call us today to speak directly with an advisor.

Related News

Gibraltar National Day celebrations illustrate the Rock’s British pride

Gibraltar FlagThe Rock has recently celebrated a special date: Gibraltar National Day, which happens on September 10 and marks the anniversary of the 1967 sovereignty referendum, when citizens chose whether to remain under British rule or pass over to Spanish sovereignty. The vote was overwhelmingly in favour of staying British.

This year, over 3,000 Gibraltarians dressed in red and white, honouring their beloved territory’s flag, and filled Casemates Square for a rally. This was then followed by festivities including fireworks, a helicopter drop of petals, and blasts of red and white smoke.

Read More

Private Pension – Options Explained by Keith Littlewood, International Financial Adviser Costa Blanca

Many people have pension pots just sitting, not really doing anything, but at every stage in life it is very important that you should keep track of your retirement provision.

If you are in your 30s or 40s look closely to what provision you have and what you might need in the future. State Benefits are not going to kick in for you until you are 67.

If you are in your 50s then this is a very critical period. One bad investment year can affect the income you receive for the rest of your life, so make sure you are looking at setting your investments up in a balanced way so that no unforeseen disasters can hurt you – this is called ‘Life Styling your Pension Pot’.

Read More

Select your country

Please select your country of residence so we can provide you with the most relevant information:

You are currently viewing the Blacktower Financial Management EU website.

You may be looking for the Blacktower United States website.

Blacktower United States > X Stay on this site

Or choose your country.