What is QROPS?

QROPS is an acronym for a Qualifying Recognised Overseas Pension Scheme that has received approval from the government regarding transfer of UK pensions. QROPS were launched in 2006 as part of an effort targeted at Pension Simplification, to which government approved schemes are taxed and regulated as offshore pensions by the countries which host them. Since creation, there were well over one thousand such pension transfer schemes unveiled in numerous countries and financial institutions all around the world.

In relation to taxation it is necessary to report back to HM Revenue & Customs actions your QROPS are involved in for the first five years of leaving the United Kingdom. Following the expiration of this time period you are not obligated to reveal your information about your offshore pension fund to HRMC. In case you decide to come back and reside in the UK duting this first 5 year period your funds have been transferred to a QROPS you could be liable for a tax charge. It is also very important to be aware of that even though you choose to stay outside of the UK for the set five years or more  you will nevertheless be liable for overseas taxes.

QROPS is only well suited for people who plan to leave the United Kingdom for at least five years. When choosing QROPS it is very important to seek out professional advice to prevent investing your pension in one that has not been authorised by HMRC.

For more information on QROPS advice please contact MyQROPS.net

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