QROPS Pension Transfer

What is a QROPS?

A QROPS Pension Transfer is a UK pension transfer into a Qualifying Recognized Overseas Pension Scheme. The QROPS Pension Transfer scheme needs to be an HMRC approved scheme and generally, individuals prefer to transfer their pensions to a stable offshore jurisdiction with similar financial principles to the UK with the added benefit that you can leave it in a hard currency.

Together with Sovereign Trust (Guernsey) Ltd, Rock Capital Management could assist you to transfer your UK pension to a QROPS which has been approved by HMRC. The two plans that we currently use are:

Atlantica Lite Personal Pension Plan: Values below GBP100 000

Taurus Personal Pension Plan: Values above GBP100 000.

Who Qualifies for a QROPS Pension Transfer?

In order to qualify for a QROPS Pension Transfer you need to be a non-tax resident of the UK or planning to leave in the next 12 months. After 5 years the QROPS Trustees no longer have to report any withdrawals or payments to the HMRC, as the QROPS Pension transfer Scheme is simply subject to the laws of the relevant overseas jurisdiction.

What are the benefits of a QROPS?

o Avoidance of IHT on the pension fund (currently 55% tax charge in UK)
o The ability to leave 100% of your pension to a nominated beneficiary
o No need to purchase an annuity (although this is still possible)
o Protection against future creditors.
o Improved investment flexibility
o Tax efficiency -- not taxed at source.
o Choice of currency.
o Take income more tax efficiently from your pension: QROPS benefits received in SA is not taxed.

There are various options regarding investment flexibility of your QROPS Pension Transfer scheme and Rock Capital Management is willing to provide you with assistance and advice in this respect.

In most instances the benefits of a QROPS Pension Transfer, make the transfer of a pension to a secure offshore jurisdiction a serious consideration.

Costs?

Atlantica Lite:GBP300 for the set up and GBP300 per annum.

Taurus: GBP850 for the set up and GBP1000 per annum.

How do I go about using a QROPS Pension Transfer?

The first step in the process is to request a valuation of your UK pension and Rock Capital management will need your authorisation to request this information. Once this information is received (which can take up to 90 days), we will analyse the information. If it is in your best interests to transfer your UK pension fund, the next step is to begin setting up the QROPS structure with Sovereign Trust (Guernsey) Limited. Once the QROPS pension structure is setup, the existing pension company will transfer your pension to the QROPS and the funds will be invested as discussed.

For further information or a free of charge consultation, please contact:

Dirk Kotze from Rock Capital Management (Pty) Ltd on 086 111 7625

Thank you to Coreen Hayman from Sovereign Trust for the information