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Transfer a QROPS to Another QROPS Jurisdiction


QROPS to QROPS Transfers

In this article, we will look at how to transfer out of QROPS; we will look at the benefits & problems surrounding transferring from one QROPS jurisdiction to another QROPS jurisdiction for tax, currency and investment optimisation.

QROPS to QROPS transfers can be problematic, but they may also solve drawdown issues if a pensioner wants to access more of their pension pot earlier in life.

Why Move from One QROPS to Another QROPS Jurisdiction?

  • you have moved to another country
  • your financial circumstances have changed
  • your life circumstances have changed, e.g. divorce
  • your health circumstances have changed and you need higher access to your retirement benefits
  • considerations concerning Brexit
  • the tax rules have changed making your current QROPS jurisdiction not optimal
  • mis-sold or mis-managed QROPS

Often, if you have moved country after an original QROPS was set up or the tax rules & regulations are no longer favourable for your current situation.

QROPS pre- and post- April 6th, 2017

  • QROPS set up pre- April 6th, 2017 can be transferred to any other QROPS
  • QROPS set up post-April 6th, 2017 can only be transferred to the country or area where you are working. If you are in Europe, you can only move to a Malta QROPS, if you are moving to New Zealand, you can only move to a NZ QROPS, if you are moving to Australia, you can only move to an Australian QROPS, if you are moving to India, you can only move to an Indian QROPS; otherwise you will get hit with a 25% exit tax from HMRC.

Issues with Moving Your QROPS to Another QROPS

  • Exit charges; there may be exit charges to transfer out of your current trustees; out of your investment portfolio; and you may be locked into certain types of investment schemes, e.g. unregulated funds or structured notes which lock you into a certain time frame
  • Date issues (see above)
  • Taxation issues – you need to understand all the Double Taxation Treaties between the QROPS jurisdiction you are moving to and your country of residence when drawing retirement benefits
  • Currency issues if you are moving to another country
  • You will need to ask for a current valuation and get the transfer out papers from your current provider as well as ask for any exit fees from your current arrangement

Transferring from a Malta QROPS to a New Zealand QROPS

  • If you had a Malta QROPS before April 6th, 2017, you can transfer to a New Zealand QROPS with no exit penalties from HMRC no matter where you live; however, you may have to pay exit fees to get out of your Malta retirement arrangement
  • There is full flexi-access drawdown in New Zealand, you can access your entire pension pot whenever you like after age 55
  • Often, the pot is discretionary managed in New Zealand, which can be a safer option
  • There is no maximum age to take your retirement benefits in New Zealand; so, if you just want to leave your pension pot as an inheritance with 0% tax, a NZ QROPS may be your best choice
  • Choice of GBP and AUD investments
  • Low cost Vanguard, Black Rock and State Street index funds and ETFs
  • 0% income tax, 0% tax on growth and 0% tax on death in New Zealand

Transferring from a Gibraltar QROPS to a New Zealand QROPS

  • If you had a Gibraltar QROPS before April 6th, 2017, you can transfer to a New Zealand QROPS with no exit penalties from HMRC no matter where you live; however, you may have to pay exit fees to get out of your Gibraltar retirement arrangement
  • There is full flexi-access drawdown in New Zealand, you can access your entire pension pot whenever you like from age 55
  • Often, the pot is discretionary managed in New Zealand, which can be a safer option
  • There is no maximum age to take your retirement benefits in New Zealand; so, if you just want to leave your pension pot as an inheritance with 0% tax, a NZ QROPS may be your best choice
  • Choice of GBP and AUD investments
  • Low cost Vanguard, Black Rock and State Street index funds and ETFs
  • 0% income tax, 0% tax on growth and 0% tax on death in New Zealand; tax neutral destination

Transferring from a Gibraltar QROPS to a Malta QROPS

  • This might be a move depending on the outcome of Brexit
  • A Malta QROPS is a European QROPS
  • Choice of currencies: GBP, EUR or USD
  • Malta has over 70 Double Taxation Agreements around the world including EEA countries
  • Usually, in the EEA, you pay income tax only in your country of residence in Europe, but you would need to check with a tax attorney about the various double taxation treaties
  • A Gibraltar QROPS has a flat rate of 2.5% income tax, plus you would need to pay income tax in your country of residence when drawing retirement benefits
  • Malta tax is often 0% at source if the Double Taxation Agreement permits, otherwise, it can be up to 35% income tax in Malta; many have been caught out as they need to show they have paid tax in their country of residence in retirement; otherwise they get taxed in Malta

Transferring from a Guernsey QROPS to a New Zealand QROPS

  • If you had a Guernsey QROPS before April 6th, 2017, you can transfer to a New Zealand QROPS with no exit penalties from HMRC no matter where you live; however, you may have to pay exit fees to get out of your retirement arrangement in Guernsey
  • There is full flexi-access drawdown in New Zealand, so you can access your entire pension pot whenever you like from age 55
  • Often, the pot is discretionary managed in New Zealand, which can be a safer option
  • There is no maximum age to take your retirement benefits in New Zealand; so, if you just want to leave your pension pot as an inheritance with 0% tax, a NZ QROPS may be your best choice
  • Choice of GBP and AUD investments
  • Low cost Vanguard, Black Rock and State Street index funds and ETFs
  • 0% income tax, 0% tax on growth and 0% tax on death in New Zealand; tax neutral destination

Transferring from an Isle of Man QROPS to a New Zealand QROPS

  • If you had an Isle of Man QROPS before April 6th, 2017, you can transfer to a New Zealand QROPS with no exit penalties from HMRC no matter where you live; however, you may have to pay exit fees to get out of your IOM retirement arrangement
  • There is full flexi-access drawdown in New Zealand, you can access your entire pension pot whenever you like from age 55
  • Often, the pot is discretionary managed in New Zealand, which can be a safer option
  • There is no maximum age to take your retirement benefits in New Zealand; so, if you just want to leave your pension pot as an inheritance with 0% tax, a NZ QROPS may be your best choice
  • Choice of GBP and AUD investments
  • Low cost Vanguard, Black Rock and State Street index funds and ETFs
  • 0% income tax, 0% tax on growth and 0% tax on death in New Zealand; tax neutral destination

Other QROPS to QROPS transfers

  • Transfer from an Australian QROPS to a New Zealand QROPS
  • Transfer from a New Zealand QROPS to an Australian QROPS
  • Transfer from a QROPS to a SIPP
  • Transfer from IOM QROPS to Malta QROPS
  • Transfer from Guernsey QROPS to Malta QROPS
  • Transfer from Jersey QROPS to Malta QROPS
  • Transfer from a Malta QROPS to an Australian QROPS
  • Transfer from a Malta QROPS to an Indian QROPS

Please contact us if you have any queries relating to QROPS to QROPS transfers

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