Andrew has an initial pot of £200,000 that he invests in low risk funds which grow at 5% per year for 20 years, giving a £530,000 pension pot. But, only £140,000 needs to be used as a pension, meaning that the member has £390,000 which he can take as a lump sum to purchase properties when he retires. Leaving £140,000 to pay him a pension income.
New QROPS Legislation. QROPS Rules. There are new QROPS rules coming into place for UK expats living abroad who want to avoid paying UK taxes through a QROPS structure. The new legislation has come into effect already. New QROPS Rules and Legislation 1) Lifetime allowance is changing from £1.8m to £1.5m, thus, an additional £300,000
This is a sad and depressing story of how the Inland Revenue (HMRC) have treated a woman in her 60’s, whose pension fund was untouched and who was diagnosed with a critical illness. She never elected to take her pension within the 2 years she had left to live, even though she was nowhere near
Avoiding Inheritance Tax If you are a British expat, avoiding inheritance tax is a top priority whilst considering estate protection for the family. This can be done easily through a QROPS transfer. The new Conservative/Liberal Democrat coalition has introduced some sweeping tax changes, but conspicuous by its absence was the Tories’ proposed increase in the
Investors in the Beazley Consulting Pension Scheme, a Hong Kong-based QROPS, face losing more than half their pension after HMRC declared the scheme was not a genuine QROPS.