QROPS List of the QROPS Providers
The QROPS list below shows the schemes which have been approved by HMRC.
The QROPS list is important because if the QROPS pension scheme you sign up for is on the list the date you apply for a transfer and you act in good faith concerning the rules of the QROPS, you should be protected. This normally provides just and reasonable grounds for HMRC to discharge any liability of the member to any unauthorised payments surcharge in the future.
QROPS List. Popular QROPS Providers. QROPS Fee Comparisons
Here is a QROPS list and QROPS fee comparisons from some of the major providers. There are hundreds of QROPS available and you can email us for the latest fees.
Capital Corporation CC HK ORS. HK QROPS
Set Up Fee: £2500
Annual Fee: £1500 or 0.5%
Boal & Co. Isle of Man QROPS.
Set Up Fee: £1250
Annual Fee: £1250
Concept- Skandia. Guernsey QROPS .
Set Up Fee: £995
Annual Fee: £995
Close. Guernsey QROPS.
Set Up Fee: £750
Annual Fee: £1000
Marlborough Shearwater. Guernsey QROPS.
Set Up Fee: £1500
Annual Fee: £1500
Sovereign Atlantica. Guernsey QROPS.
Set Up Fee: £850
Annual Fee: £1000
Sovereign Calpe Retirement Benefit Scheme. Gibraltar QROPS.
Set Up Fee: £850
Annual Fee: £1000
STM Malta. Malta QROPS.
Set Up Fee: £1350
Annual Fee: £1350
Gower Horizon. Guernsey QROPS.
Set Up Fee: £1000
Annual Fee: 0.75% of fund value.
Other Popular QROPS Providers:
Fairburn, Bourse, Gower Horizon, STM Gibraltar, Windsor, Brooklands, Momentum.
We have access to QROPS providers from this QROPS list and many more.
ENQUIRE ABOUT OUR LOW COST QROPS: firstname.lastname@example.org
HMRC QROPS List
It doesn’t matter which country you live in. You can hold a QROPS anywhere and it is often better to hold your QROPS in a 3rd jurisdiction for tax efficiency
So, you could live in Thailand or Spain, but have a QROPS in Malta or Gibraltar.
How to Choose Your QROPS from the QROPS List
Please email email@example.com for more information on which jurisdiction will suit your pension needs from the QROPS list. Everyone is different and we will find a QROPS provider to fit your individual needs.
What Are the Best QROPS Locations from the QROPS List?
Any overseas Self Invested Personal Pension (SIPP) registered with the Inland Revenue as a Qualifying Recognised Overseas Pension Scheme (QROPS) can be used for UK pension transfers. It is important to find the optimal offshore location for your QROPS to get the maximum benefit from your pension. An updated QROPS list (4th April, 2011) shows that there are QROPS schemes in the following countries:
Czech Republic QROPS
Hong Kong QROPS
Isle of Man QROPS
New Zealand QROPS
Russian Federation QROPS
South Africa QROPS
Sri Lanka QROPS
St Lucia QROPS
St Vincent and The Grenadines QROPS
Trinidad and Tobago QROPS
The Isle of Man and Guernsey QROPS schemes used to be the most popular schemes, but due to changes in QROPS regulations they have fallen out of favour. Some 300 Guernsey schemes were closed and the Isle of Man scheme now attracts a 20% income tax. New Zealand, Malta and Gibraltar QROPS tend to be more popular now.
You can email us for a full QROPS list and we can find the best value QROPS from the main QROPS providers to maximise tax efficiency and increase return on investment based on your risk profile, your type of pension, your size of pension, where you currently reside as well as where you plan on retiring.
Where Can I Find the Maximum Tax Free Lump Sum from the QROPS List?
QROPS Jurisdictions and Maximum Lump Sum Allowed
|Malta||30% + 50% of any increase in the pension pot every 3 years after transfer|
|Isle of Man||30%|
|New Zealand||30% + 100% of increase in the pension pot after transfer|
N.B. The 30% lump sum can only be taken if you have been offshore for more than 5 years, otherwise you can only take 25% as Pension Commencement Lump Sum (PCLS).
You need to be offshore for 5 years and non-resident to take advantage of the extra drawdown (otherwise the extra 5% would be considered an unauthorized payment by the Inland Revenue). If you intend to move into a QROPS, you should also intend to retire abroad at the time of moving your UK pension into a QROPS.
One of the main advantages of QROPS is the drawdown in retirement along with the benefits you receive upon death, avoiding UK income tax and UK inheritance tax.
You can opt whether to purchase an annuity or not. Assuming the member does not wish to buy an annuity, the table below shows the drawdown you can expect in retirement before 75 and after 75.
|UK||IOM||Gibraltar, Malta, NZ|
|Before 75||0-120% UK GAD rates||0-120% UK GAD rates||0-120% UK GAD rates|
|After 75||ASP 55-90% GAD||35-120% UK GAD rates orActuary Calculation||Annuity Quote orActuary Calculation|
What are UK GAD Rates?
GAD is the Government Actuarial Department. They work out the pension you are allowed to withdraw based on 15 year UK FTSE Gilts. A typical drawdown may be around 4% – 6% per year of your pension pot which would increase as you get older.
One of the great things about QROPS is that you don’t have to be locked in to an alternatively secured pension (ASP) like you do in the UK, which means you can withdraw more (or less) of your pension after 75. The flexibility and choice is in your hands rather than the taxman’s!
Taxation of Pension
The UK has in place over 100 Double Tax Agreements (DTA) with international countries, but it is a fact that key countries that are destinations for retirement for British expats are missing from this DTA list. Furthermore, pension income is excluded from many of these treaties. The list of countries falling into one of these DTA black holes includes:
• Hong Kong
This means if you have a SIPP and are no longer offshore, you could get taxed on your pension even if you live offshore in Thailand or Dubai for example. A QROPS will protect you from UK income taxes and most importantly the 55% tax upon death that the UK imposes.
IOM QROPS: There is no personal allowance since 2010 in IoM for non-residents. QROPS income would be subject to a 20% tax rate. However, this can be paid out tax-free at source for countries which have a Double Taxation Agreement with the Isle of Man, currently that is Australia, Bahrain, Belgium, Estonia, Ireland, Malta, Norway, Poland, Qatar, Slovenia, UK.
There is a 7.5% tax upon death for an IOM QROPS whilst in drawdown.
NZ QROPS: There are no taxes on an NZ QROPS.
Malta QROPS: taxes are between 15% and 35%, But, if you are in one of the 65 countries which has a DTA with Malta, the tax could be reduced to zero.
Gibraltar QROPS: there is a flat rate of tax of 2.5% on a Gibraltar QROPS.
So, a QROPS can avoid the UK income taxes imposed on SIPPs based in the UK.
Pension Benefits Upon Death. Avoidance of IHT
Possibly the largest benefits of moving from a UK pension scheme to a QROPS occurs upon death. The taxman in the UK does not want you to pass on your pension tax free at death. They want a piece of the pie. Luckily, QROPS allows you to pass on 100% of your pension pot upon death as a cash lump sum to whichever beneficiaries you choose to name.
The table below shows the benefits payable upon death.
|UK||IOM||Gibraltar, Malta & New Zealand|
|Before Retirement||100% of Fund||100% of Fund||100% of Fund|
|Retirement before 75||Fund – 55% Tax||Fund – 7.5% Tax||100% of Fund|
|Retirement After 75||Fund – 55% Tax||Fund – 7.5% Tax||100% of Fund|
The new UK pension rules as of April, 2011, mean that upon death, there is a 55% tax charge if your spouse decides to take a lump sum. A QROPS allows you to pass the entire pot on with no charges.
UK Financial Advisers
Whilst QROPS had some teething problems when first launched in 2006, the rules are firm and schemes in the past which have allowed 100% lump sums have been punished. This led to some companies in the UK to only allow their advisers to push UK SIPPs. Many UK advisers have limited or no knowledge of offshore SIPP providers and the range of offshore funds.
QROPS are often the best solution for British expats living abroad. Not only does it allow them investment freedom with all their pensions in one place, it allows them to avoid UK taxes on their pension. The flexibility of a QROPS combined with family protection make it an important scheme for financial planning for British expats living abroad. For access to the best schemes from the QROPS list, please contact us.
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QROPS list article written by QROPS Specialists.