What are QROPS?
Qualifying Recognised Overseas Pension Schemes (QROPS) are pension schemes which enable individuals to transfer their UK tax-relieved pension scheme benefits to an overseas scheme that is registered with Her
Majesty’s Revenue and Customs (HMRC).
A QROPS can be used to receive transfer values, including protected rights, from any UK registered pension scheme (other than annuities in payment and occupational pension schemes in payment), even where
benefits have already been taken.
Benefits of QROPS
- Greater control - more say over where your pension fund is invested.
- Tax efficient - potential for substantial tax reductions when you access you pension, or on death.
- Inheritance benefits- possibility of passing on you pension fund to your beneficiaries, free from UK Inheritance Tax.
- Simple - numerous pensions can be consolicated into one QROPS.
- Easy to manage - pension trustees and your scheme provider can be geographically closer to where you live.
- No annuity - you do not have to buy an annuity within QROPS.
