Is This the Future of UK Pensions?
Change Ahead in UK Pensions Landscape
New think tank, the Centre for Policy Studies (CPS), marks out the future for pensions. This influential group’s policies in the past have become the governments’. policies before.
The CPS report show the government has wasted 350 Billion GBP on pensions tax relief.
The report, entitled Costly and Ineffective: Why Pensions Tax Relief Should be Reformed
The End of Final Salary Scheme Transfers to QROPS
HMRC clearly stated in the budget on April 6th 2014, that public sector final salary schemes will not be allowed to be transferred to a QROPS in future.
This is to come into effect in April 2015, but since QROPS transfers can take 3 – 6 months, this means that there are really less than six months left to transfer your pension out of a public sector final salary scheme and into a QROPS.
So, if you are in the armed forces, worked in the MI5 or MI6 or if you are a doctor, nurse, teacher, firefighter, policeman, educator, professor, councilor, civil servant, train driver, bus driver or worked for British Gas, British Rail, the United Nations (UN), Tech First, The European Commission, the NHS, British Universities or GCHQ, this is your last chance to transfer out your pension from a UK scheme into a QROPS (Qualifying Recognized Overseas Pension Scheme) to get out of the UK tax net.
Although retiring and living off pensions is the lifelong dream of many, paying the required taxes often puts a damper on what should be the Golden Years. Learn how QROPS can provide you with a legal way to have a healthy retirement without having to pay high taxes.
What is QROPS?
Recognized by the Her Majesty’s Revenue and Customs (HMRC), QROPS, also known as Qualifying Recognized Overseas Pension Scheme is a pension scheme that was developed in 2006 to provide UK pensioners with more flexibility, fewer restrictions and lower tax liabilities. QROPS allows individuals to transfer their existing or “frozen” UK pension benefits into a different HMRC scheme offshore or outside of the UK. This is particularly useful for Britons who wish to leave the UK and return to their original country of birth to retire or for Britons who are tired of the UK and want to retire elsewhere offshore.