Frequently Asked Questions

 

Who Can benefit from a qrops?

There are 3 main groups who can benefit from a QROPS.

        

  • A UK resident with an existing UK pensions scheme who intends to leave the UK in the near future
     
  • An individual who has left the UK and has no plans to return
     
  • A UK Expat who is working overseas and plans to return to the UK at some point in the future.
     

What does a QROPS do that my current UK pension doesn't?

If you are no longer resident in the UK for tax purposes but you still have a UK pension, you are still required to pay both income tax on taking benefits and ultimately either buy an Annuity or take an Alternatively Secured Pension (ASP).  Either way, tax will be deducted in the UK, and in the case of an ASP, the residual value on your death could be taxed at 82%.

A QROPS does not require an annuity to be purchased.  There is no UK tax payment made by the trustees and tax is payable at Guernsey rate - which is currently 0% for non-residents.

 

Are there any age restrictions?

No - there are no age restrictions.  You can transfer your pension whether you are 30 or 80.

 

How long do I need to have been living outside the UK in order to take advantage of a QROPS?

A QROPS can be taken out as soon as you have become a non UK resident providing you intend to remain so for the foreseeable future. Therefore, a QROPS can be taken out as soon as the first day of non UK residency or after several years.  There is no time-limit - providing you meet the criteria.

 

Do you have to report pension payments to the UK authorities?

Once you have been resident outside the UK for 5 full tax years, any payments are not required to be reported to HMRC.

 

What does it cost?

Your pension advisor will notify you of the costs involved.  Unlike many QROPS schemes we have no hidden charges.

 

Is there a limit on pension transfers?

There are no limits to the amount that can be transferred.  There is also no limit to the size of funds that can accumulate.

 

Can I purchase a residential property with my QROPS ?

Once you have a QROPS, and provided that you have not been at any time in the last 5 years resident in the UK, then the laws of Guernsey will permit investment into residential property although normally this will  only be permitted through indirect ownership through a corporate structure.

 

How long does the transfer process take?

Generally the process takes a couple of months.  However, if the transfer is from an occupational pension scheme the process may take longer.

 

Why Guernsey?

Since the introduction by HMRC of QROPS in 2006, Guernsey has become the leading provider of QROPS - partly because of its independence and political stability.

Both HMRC and Guernsey are keen to see that QROPS are utilized effectively and to a high standard, to stop the potential abuse of the QROPS regime.

Guernsey has become the preferred QROPS jurisdiction by many experts.

 

What are the benefits of a Guernsey qrops?

  • The ability to consolidate not only UK pensions, but also other pension arrangements.
     
  • No obligation to purchase an annuity
     
  • Flexibility as to when benefits can be paid
     
  • Possibility to request a commercially structured loan.
     
  • Zero tax liability in Guernsey - although there may be taxes subject to your country of residence.
     
  • Wide range of assets and investments.
     
  • Scheme governed by Guernsey law
     
  • We are truly independent unlike many of our competitors.
     
  • Upon death there will be tax effective benefits available for distribution to your beneficiaries