QROPS Trinidad and Tobago. Pension Tax Relief
British expats living in Trinidad and Tobago or wishing to retire in Trinidad and Tobago can now transfer their pension into a QROPS Trinidad and Tobago to maximize pension tax relief. British expats in Trinidad and Tobago can take advantage of their offshore status and transfer their UK pension offshore to somewhere secure like Gibraltar and will no longer have to pay UK taxes on their pension as long as they stay offshore.
Also, Trinidadians who have worked in the UK and built up a pension can also transfer their pensions offshore to reduce taxes and protect their family.
Why live or retire in Trinidad and Tobago as a British expat?
With its sunny weather, sandy beaches and blue waters, Trinidad and Tobago has long been a pull for UK expats and more than 13,400 Brits have decided to live and work in Trinidad and Tobago. Over 1,400 British pensioners live there. Trinidad and Tobago has earned a reputation as an excellent investment site for international businesses and has one of the highest growth rates and per capita incomes in Latin America.
Recent growth has been fueled by investments in liquefied natural gas (LNG), petrochemicals, and steel. Additional petrochemical, aluminium, and plastics projects are in various stages of planning. Trinidad and Tobago is the leading Caribbean producer of oil and gas, and its economy is heavily dependent upon these resources but it also supplies manufactured goods, notably food and beverages, as well as cement to the Caribbean region. Oil and gas account for about 40% of GDP and 80% of exports, but only 5% of employment.
The country is also a regional financial center and tourism is a growing sector, although it is not proportionately as important as in many other Caribbean islands. The economy benefits from a growing trade surplus. Economic growth reached 12.6% in 2006 and 5.5% in 2007 as prices for oil, petrochemicals, and LNG remained high, and as foreign direct investment continued to grow to support expanded capacity in the energy sector.
If you are a Brit living in Trinidad and Tobago, you can take advantage of your offshore address to reduce UK tax on your pension as well as protect your wife and children from high taxation should anything happen to you. One of the benefits of a QROPS Trinidad and Tobago pension transfer is the availability to hold multiple currencies, so you could hold a portion of your pension in Pounds, Dollars, Euros or Rand or hold the entire pension in one currency.
The Benefits of Moving a UK Pension to a QROPS Trinidad and Tobago
What are the benefits of a QROPS Trinidad and Tobago Pension Transfer for British expats?
• Currency choice. You can choose to have your pension transferred to a QROPS denominated in USD, EUR or keep it in GBP
• Have the ability to make higher returns with freedom of investment
• Family Protection: Upon death, the entire pension pot gets passed on to your nearest and dearest
• Security: The pension is held in a secure jurisdiction such as Gibraltar or NZ which have their own strong financial regulations which are tax efficient
Brits moving to Trinidad and Tobago can enjoy island life whilst enjoying a pension that is free of UK tax. The best option for your QROPS Trinidad and Tobago is often a transfer to New Zealand or Gibraltar, where it can grow tax free.
Personal Income Tax in Trinidad and Tobago
British expats in Trinidad and Tobago who are born in the UK, but resident in Trinidad and Tobago pay income tax on their worldwide income.
All taxpayers are entitled to a Personal Allowance of TT$60,000.00 per year. If an individual is resident for more than 183 days in a calendar year and therefore is able to claim personal allowance. This means that British expats resident in Trinidad and Tobago do not pay income tax on the first TT$60,000.00 of income and would pay no income tax at all if less than this amount. For income above that there is a flat rate tax of 25% (2013).
You can see more from the website for Trinidad and Tobago Ministry of Finance.
What is QROPS Trinidad and Tobago?
A Qualifying Recognized Overseas Pension Scheme (QROPS Trinidad and Tobago) allows your UK pension to be transferred offshore to reduce your tax burden. Effectively, you will no longer pay UK tax on your pension whilst you are offshore and after 10 years of living offshore, the reporting requirements to HMRC cease.
If you are living in Trinidad and Tobago at the moment, you can take advantage of your offshore address in order to move your UK pension into a QROPS Trinidad and Tobago to avoid further UK taxes down the line.
A move to New Zealand would avoid all taxation, but your investment options are limited to 5 strategies based on your risk profile.
A move to Gibraltar means freedom of investment, but a flat rate of 2.5% income tax on your pension income when you decide to retire. You can invest in most shares, mutual funds, ETF’s, bond funds and equities from the major exchanges from around the world.
Can I Move My UK Pension to a QROPS Trinidad and Tobago?
Do I need to move my pension to Trinidad and Tobago?
No. Trinidad and Tobago only have 3 listed QROPS, 2 of which are annuities. A better bet may be transferring your pension to a secure jurisdiction such as Gibraltar or NZ where it will be out of the UK tax system and your pension will be paid gross and grow tax free.
Do I need to live and retire in Trinidad and Tobago?
No, you can live anywhere offshore. As long as you are outside the UK, your QROPS will grow free of UK tax. If you ever return to live permanently in the UK, your pension will simply return to UK Self Invested Pension Plan (SIPP) rules.
For enquiries, please send email to email@example.com
Pension tax relief for British expats, QROPS Trinidad and Tobago article written by QROPS Specialists.QROPS Trinidad and Tobago Pension Transfer for British Expats to Avoid Paying Taxes by Richard Malpass