QROPS, QROPS Armed Forces

Armed Forces Pension Scheme. QROPS Pension Transfer to Avoid UK Taxes


If you no longer live in the UK and you are non-resident for tax purposes and are in the Armed Forces Pension Scheme (AFPS) then you can transfer your pension into a Qualifying Recognized Overseas Pension Scheme (QROPS) in order to avoid paying taxes on your pension in the UK.

If you spend less than 91 days a year in the UK, you are considered a non-resident and can apply for a QROPS pension transfer. This means members of the Armed Forces PensionScheme (AFPS) no longer need to pay any more UK taxes.

armed forces pension
Armed Forces Pension Scheme QROPS Transfer

Armed Forces Pension Scheme Transfer

If you are a British expat and have served in the British Armed Forces or British military, you can transfer to a QROPS to avoid UK taxes. QROPS Specialists ensure that serving and retired members of the Armed Forces, their widows, widowers, surviving partners, civil partners and dependents receive the pension to which they are entitled and which they deserve and make sure their Armed Forces Pension is free from UK taxes. As long as you are a British expat or wish to retire abroad, you may qualify for a QROPS Armed Forces pension transfer.
The Armed Forces Pension Scheme is one of the best there is, but you still pay UK taxes on it and it only grows in line with inflation. A QROPS Armed Forces Pension Transfer will get you out of the UK tax net.
You can access your Armed Forces Pension as early as 55 with a QROPS transfer and your pension has the chance to grow by more than it would in the UK, which is now only linked to the lower inflation rate, CPI. You also can choose the currency you are paid in and it is tax-free.

Army retirement for British expats can now be more beneficial with a tax-free, stress free transfer to a QROPS. Get more out of your pension on civvy street.

Who Qualifies for a QROPS Armed Forces pension transfer?

All current and ex-servicemen who live or wish to retire abroad. Anyone who has served or is serving in the Royal Navy, Royal Marines, British Army, Royal Air Forces and wants to live outside the UK for more than 5 years. In fact, any UK expat can apply for a QROPS pension transfer. So, any non-military spouse may also apply.

When would I receive my armed forces pension under normal UK circumstances?

You receive your Armed Forces pension at 65.

When would I receive my Armed Forces pension if I transfer to a QROPS?

You can receive 30% as a cash lump sum at 55 and the rest can be used as an annual income from age 55  you can delay to grow your lump sum and take at a later date of your choice.

Where will my pension be transferred to? Will it be safe?

Yes, your pension can be transferred to a safe, secure offshore jurisdiction such as the Isle of Man or Gibraltar which are under the protection of the British Crown. The scheme allows ex-forces personnel with non-residential tax status (less than 91 days a year in the UK) to transfer out of the UK tax net into a QROPS held by trustees in the IOM or Gibraltar, for example.

Can I transfer to a QROPS if I still live in the UK?

Yes, but only if you are considering moving abroad and live abroad for at least 5 years or more. QROPS are really for those who are not considering moving back permanently to the UK.

Armed Forces Pension. Reasons to transfer to a QROPS

Why would I move my Armed Forces Pension Scheme (AFPS) into a QROPS?

 

  • Avoids UK income tax (which is 20% – 50% in 2011)
  • Avoids UK inheritance tax
  • Avoids UK death tax
  • Your spouse or family get the entire pension pot if anything happens to you
  • Decide which currency (GBP, EUR, USD, etc) you want your pension paid in
  • Have the chance to increase the value of your pension with freedom of investment choice
  • Access up to 30% of your pension as a lump sum at 55

Why Choose QROPS Specialists?

We have specialist knowledge of the best jurisdictions and most importantly, the cheapest fees for moving your pension into a secure, safe jurisdiction with pension trustees you can count on.
Whether you are ex-forces and living abroad or plan to retire abroad, we make life easy for you. Let QROPS Specialists help you avoid UK taxes.

Armed Forces Pension. Pension Transfer to Avoid Paying UK Taxes

The QROPS Pension Transfer Process

How does a QROPS pension transfer work?

We do all the paperwork for you. We draft a letter for you to send to the Armed Forces Pension Scheme (AFPS) which allows us to work with them in moving your pension. Once we know the transfer value of your pension, we will do all the required paperwork for you. Then the pension monies get transferred to the trustees who then invest the money in the currency and funds of your choice. We will help you in this matter to get the most out of your pension.
The process should take 3 months, but can take up to 6 months, so the sooner you begin, the quicker we can release the funds to you and begin avoiding tax and future UK tax increases.

Contact QROPS Specialists today at info@qropsspecialists.com

All our QROPS schemes are Her Majesty’s Revenue & Customs (HMRC) approved schemes, a list of all approved schemes can be found here, www.hmrc.gov.uk/pensionschemes/qrops.pdf

The following British Armed Forces can apply for a QROPS armed forces pension transfer

BRITISH ARMED FORCES RANKS
Army Ranks
1. Private
2. Lance Corporal/Bombardier
3. Corporal
4. Sergeant
5. Staff/Colour Sergeant
6. Warrant Officer Class 2 (CSM,SSM)
7. Warrant Officer Class 1 (Regimental Sergeant Major)

Army Ranks Officer

1. 2nd Lieutenant
2. Lieutenant
3. Captain
4. Major (The Warrant Officer Class 1 is equivalent to more or less Captain/Major)
5. Lieutenant Colonel
6. Colonel
7. Brigadier
8. Major General
9. Lieutenant General
10. General

Royal Air Force Ranks

1. Aircraftman/woman
2. Leading Aircraftman/woman
3. Senior Aircraftman/woman
4. Junior Technician
5. Corporal
6. Sergeant
7. Chief Technician
8. Flight Sergeant
9. Warrant Officer Class 1 (Master Aircrew)

Royal Air Force Ranks Officer

1. Officer Cadet
2. Pilot Officer
3. Flying Officer
4. Flight Lieutenant
5. Squadron Leader
6. Wing Commander
7. Group Captain
8. Air Commodore
9. Air-Vice Marshal
10. Air Marshal

Royal Marine Ranks

1. Marine
2. Lance Corporal
3. Corporal
4. Sergeant
5. Colour Sergeant
6. Warrant Officer Class 2
7. Warrant Officer Class 1

Royal Marine Ranks Officer

1. 2nd Lieutenant
2. Lieutenant
3. Captain
4. Major (The Warrant Officer Class 1 is equivalent to more or less Captain/Major)
5. Lieutenant Colonel
6. Colonel
7. Brigadier
8. Major General
9. Lieutenant General
10. General

Royal Navy Ranks

1. Ordinary Rate (Seaman/woman)
2. Able Rate
3. Leading Rate
4. Petty Officer
5. Chief Petty Officer
6. Warrant Officer Class 2
7. Warrant Officer Class 1

Royal Navy Ranks Officer

1. Officer Cadet
2. Midshipman/woman
3. Sub Lieutenant
4. Lieutenant
5. Lieutenant Commander
6. Commander
7. Captain
8. Commodore
9. Rear Admiral
10. Vice Admiral
11. Admiral

QROPS Armed Forces Pension Transfer Article by QROPS Specialists. Contact us at info@qropsspecialists.com

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4 Comments

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  • Hi there,

    I’m currently residing in Australia and in accordance with legaslative requirements, I declare my British Army pension as an income. This income is then taxed locally. How would QROPS benefit me and anyone else in the same situation?

    Thanks

    Terry

    • Hi Terry,

      It depends on many factors such as age, when you joined the army, your residency status, where you will retire and whether you are in drawdown or not. I have sent you a message privately.

      But, basically, due to the exchange rates at the moment, it may not be in your interests to transfer from GBP to AUD and you can also escape the 55% UK tax upon death once you start receiving your benefits by moving to a Malta QROPS which has a Double Taxtation Agreement (DTA) with Australia.

      Best regards,

      Richard

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