Would you like to liberate your Pension scheme from the UK taxman?

YFSOL chairman Clive Evans has recently taken the QROPS escape route, should you join him?

Over £500 million left UK-registered pensions for QROPS [Qualifying Retirement Overseas Pension Schemes] in the first two years following their introduction in April 2006, with probably a similar amount in the two years susequent.

Why?

How? 

Are you like most of our clients, unlikely to take retirement in the UK?

Do you like many of our clients have a UK based pension plan, either from previous employment [e.g. Royal Navy or other employer] or a personal plan that you set up whilst in the UK?

Does it all seem a bit out of reach?

Would you like to be able to decide where and how it's invested and above all not be subject to UK tax when you draw benefit?

A QROPS will generally give you much greater control over your pension scheme and ensure you pay the least possible tax on the benefits.

How do I pay less tax?

Reduced income tax

UK pensions are paid out net of basic-rate tax wherever you are.

A QROPS can pay you gross income so you will only pay tax if any, applicable in your actual country of retirement.

Tax Free Lump sum flexibility

Most UK pension schemes limit the lump sum which can be taken tax free on retirement to 25%; this can be up to 30% via QROPS

No income tax charge on death

In the UK all crystallisedbenefits (UK registered pensions in draw down) are subject to a tax charge on death.

Via QROPS there is no income tax on the payment of a lump sum to your dependants on your death

No UK inheritance tax

QROPS are not subject to UK Inheritance Tax upon your death.

How do I get greater control?

Choice of Retirement Age

You can draw benefits at any age from 55 onwards; you can take your tax free lump sum at this point, and take income or defer income to a later date.

Protection from currency fluctuations

Most UK arrangements are denominated in sterling.

Via QROPS you can invest in assets denominated in most currencies and receive payment in your local currency, eliminating exchange rate risk and currency charges.

Investment selection

Via QROPS you can access a range of 21st century international investment vehicles and can integrate these into your overall financial plan.

Most UK occupational schemes [e.g.  Royal Navy] give you no choice in how your money is invested.

Most UK personal plans have a limited choice of UK based investments.

Neither will usually benefit from 21st century thinking.

Generation planning

QROPS funds remain intact after your death, even if you have been receiving an income, and can be totally passed to your beneficiaries. In many UK schemes, pensions cease or reduce on your death.

Income flexibility

Income options are wide and based upon, among other things, life expectancy, you can even choose to take no income at all or vary income year to year.

Given these benefits, it's no surprise that thousands of UK expats have already liberated their pensions from the UK taxman

Like them: set your pension free and help it into the 21st cenury with YFSOL!