QROPS in 2009
Globally there are lots of QROPS as can be seen by HMRC's current QROPS list which runs into 32 pages and is growing each fortnight. However, many of those listed are not available to an individual member because they are:
Occupational schemes of international employers.
Individual and family QROPS.
QROPS only available to individuals who become resident in that country such as some in Australia.
The other QROPS and particularly their domicile will however be of interest to many readers. Research of international pension legislation, (often called superannuation schemes), reveals there are many countries which have very different rules and regulations to the UK but have QROPS authorisation and allow non residents to transfer pension funds into their scheme. Crucially their QROPS authorisation doesn't stipulate that 70% of the fund must be used to provide a lifetime income. So using these European and Worldwide QROPS can ensure: Far greater levels of annual income than QROPS in jurisdictions which adopt and adhere to the UK GAD rates for imposing a lifetime income formula.
The investment choice can be wider to include residential property.
Access to the fund perhaps via simple fund loans can be achieved even before age 50 years old.
The complete 100% release of funds to the member.
There are HMRC charges on various extractions from the QROPS however avoiding HMRC member payment charges can be achieved after five complete UK tax years of non residency. This then gives you even greater flexibility and complete control on how to use your accumulated pension fund. You can see more information on QROPS in our article QROPS in 2009 - Summer Developments
The other QROPS and particularly their domicile will however be of interest to many readers. Research of international pension legislation, (often called superannuation schemes), reveals there are many countries which have very different rules and regulations to the UK but have QROPS authorisation and allow non residents to transfer pension funds into their scheme. Crucially their QROPS authorisation doesn't stipulate that 70% of the fund must be used to provide a lifetime income. So using these European and Worldwide QROPS can ensure:
There are HMRC charges on various extractions from the QROPS however avoiding HMRC member payment charges can be achieved after five complete UK tax years of non residency. This then gives you even greater flexibility and complete control on how to use your accumulated pension fund. You can see more information on QROPS in our article QROPS in 2009 - Summer Developments