QROPS Singapore Loses Approved Status From HMRC
HMRC has stunned offshore pension providers by removing approved status from all Singapore based
QROPS.
Although no reason has been given the Singapore authorities take is that HMRC simply do not understand the Singapore tax regime.
Brits Go Abroad For A Better Pension
Brits Go Abroad For A Better Pension: “Expats can now take funds with them and never buy an annuity thanks to new rules on overseas pensions.”
(Via Homes Worldwide - Latest Property & Travel News.)
Spanish Wealth Tax Abolished
You will be pleased to learn that following all of the rumours, Spanish Wealth Tax has finally been rescinded with effect from 2009.
Whilst because of the allowances available this affected non residents more than residents it is none the less a welcome move.
This also means that non resident owners who did not like to sort out their own wealth tax may no longer need to retain the services of a fiscal representative; however, you do need to check out your agreement with your representative and give them notice as soon as possible.
For further information on Spanish Wealth Tax.
Double Taxation For Isle Of Man QROPS
We have discovered that investors who take out an Isle of Man-based QROPS with a view to reducing inheritance tax by up to 70% on death may have to pay two lots of income tax on their pension withdrawals.
Under current legislation, scheme members could be subject to an 18% tax charge on withdrawals, in addition to paying income tax in their host country.
All of which makes us wonder why anyone would consider an IOM QROPS in the first place?
Firms marketing IOM QROPS are hoping the Isle of Man treasury will lower its tax charge for scheme members who are already paying pension income tax in their host country as The Island has applied this principal for its own ex-pats.
Frankly we don’t think “hope” is a good basis for planning!
Further information on our QROPS Services.
Qualifying Recognised Overseas Pension Schemes - QROPS
What is Free My Pension? and how can I transfer my pension overseas?
If you live overseas you are entitled to move your pension with you and whilst it has always been possible to transfer and or take pension benefits abroad, under pension simplification in April 2006 this became very much easier.
Why leave your funds in the UK?
In the UK the earliest that you can draw on your pension benefits is age 50 (unless you are in a special occupation or are able to claim early retirement through ill health) and this is soon to increase to age 55.
See below for further information on how we can free your pension…
*
Funds left in UK
*
Living Overseas
*
Why transfer your pension
*
Direct Benefit Comparison
*
FREE - No obligation report!
Caution urged over Irish scheme transfers
Pension scheme trustees considering moving a scheme to Ireland are being urged to be cautious.
Rowanmoor Pensions, the UK’s largest independent small self-administered scheme (SSAS) practitioner, is urging advisers to be cautious about recommending the move, even though there are some advantages to it.
Spain tax office wants Gibraltar blacklisted
Spain is due to ask the OECD to return Gibraltar to a blacklist of tax havens that refuse to cooperate in fighting money laundering.
Read the rest of this entry »
QROPS Press Release
The UK Inland Revenue has given Britons living abroad an unexpected bonus. For those who intend to remain permanently abroad it is now quite simple to transfer their UK pensions to more tax friendly jurisdictions via a Qualifying Recognised Overseas Pension Scheme (QROPS).
After a qualifying period individuals can access their funds in their entirety and use the capital and income in the way that is most tax favourable for them and upon their death, they can leave it to whomever they like.
This compares most favourably with the pension regime in the UK and ex pats around the globe should be making it a priority to remove their funds from the UK as quickly as possible.
A degree of caution should be exercised because some QROPS appear to rely on artificial contracts of employment, which would of course incur huge penalties.
For clear impartial and appropriate advice contact Free My Pension.
Free My Pension - Presentation
Please download the latest QROPS Presentation here;
QROPS: Frequently Asked Questions
Q. Am I able to transfer protected rights into a QROPS?
A. Yes, as long as the receiving Qualifying Recognised Overseas Pension Schemes (QROPS) is willing to accept it. When the transfer takes place form CA1881 should be completed, which enables HMRC to keep track of where the protected rights are. In transferring protected rights it is necessary to state that you understand that all protection associated with UK pensions legislation is being given up.
Q. Can I transfer benefits that are already in payment to a QROPS?
A. Yes, so long as the receiving QROPS is willing to accept transfers of funds where the member is receipt of an unsecured or alternatively secured income. Unless the member has not been UK resident during the last five complete tax years then UK rules associated with these benefits are lost. If the member does not satisfy this condition however UK provisions associated with these types of benefits continue to operate until the five-year rule has been satisfied.
Annuities in payment and pensions in payment from occupational final salary schemes may not be transferred.
Please download the Full FAQ’S to QROPS (PDF)
