What is a QROPS?

Qualifying Recognised Overseas Pension Plan

  • If you are an Expat, or intend to move Abroad you can transfer your UK pensions to a QROPS now
  • This can give you considerable tax savings and greatly increase your retirement flexibility
  • The notes below explain how this works

Annuities

  • Never have to buy an annuity
  • You can control how and when you take your retirement income

No Tax on Pension Income

  • Income is paid to you Gross, with no deduction for Tax

Early Retirement

  • Retirement available from age 55 as per UK, but we also offer:-
    • Special occupations, e.g. (Footballers, age 35) may be able to retire earlier
    • Early retirement may be allowed in cases of ill-health
    • Early retirement may be allowed subject to Trustees’ discretion

Retirement at age 75 (ASP – Alternatively Secured Pension)

  • No need to buy an annuity at age 75
  • Avoid the UK 82% ASP (alternatively secured pension) tax charge
  • No additional tax charges at this or any age
  • Leave the fund tax-free to your children
  • You can transfer in pensions that are already in ASP

IHT & Passing your Pension to your Children

  • Your pension will not die with you
  • Pass funds tax-free to children or dependents when you die

No Tax on the Pension Fund Growth

  • Investments are sheltered in a Tax Wrapper
  • No Capital Gains Tax on any investment assets
  • No Income Tax
  • Not subject to the European Savings Directive

No Maximum Funding (Lifetime Allowance)

  • The UK maximum lifetime allowance rules do not apply
  • So you don’t incur a tax charge if you have large pension funds

Allowed investments

  • All UK regulated investments are allowed
  • In addition, many other investments may be allowed
    • These include buy to lets and residential property in the UK and Abroad

Sell your Assets to your Pension

  • Your QROPS Pension may be able to buy your existing asset portfolio such as
    • Buy to lets and residential properties
    • Unit Trusts, Shares
  • This releases to you the equity currently tied up in the investments
  • It shelters the investments in a tax wrapper
    • Hence avoiding tax on fund growth or income
  • It takes your assets out of your estate for IHT purposes
    • Assets within your pension can be passed tax free to your children

We accept transfers from

  • SIPP or SSAS
  • Personal Pension or Stakeholder Pension
  • Occupational Pension, Final Salary
  • Occupational Pension, Money Purchase
  • EPP, Executive Pension
  • S32, S226
  • Protected Rights, Funds Contracted Out from SERPS and S2P
  • FURBS, Funded Unapproved Retirement Benefit Schemes
  • Income Drawdown Plans, even if they are in payment
  • If you are 75 and in ASP your funds can still be moved

Important Note

  • ALL the advantages above apply only once you have had five full tax years outside the UK
    • Until then a QROPS functions like a UK SIPP
    • However, in the first five years your income can be paid to you gross, without tax deducted
  • Transferring to a QROPS whilst still UK resident is very common
    • Pension funds are therefore outside the UK in case future legislation prohibits transfers

Note for IFAs

  • Brooklands uniquely offer QROPS in both Guernsey and New Zealand; QNUPS in both Guernsey and New Zealand and a UK SIPP. Clients may switch between them without penalty if their circumstances change.
  • Full marketing and technical data will be sent to you when you enquire.