UK OVERSEAS PENSION HELP

for foreigners settling in Thailand

Pension Transfer: QROPS Guide Thailand

If you are from the UK and you are thinking of moving to Thailand or you are here already, you can take advantage of changes in pension regulations from ‘A-Day’, April 6, 2006. You can now transfer your pension offshore to a tax beneficial jurisdiction such as Guernsey or the Isle of Man with the aid of QROPS specialists. We have listed some of the major benefits of a QROPS pension transfer below:

The benefits:

Investment freedom

A wide range of investment opportunities are available within a QROPS (mutual funds, bonds, shares, cash, property, exchange traded funds) which allow more freedom of choice in investment to capitalize on opportunities in the market.

Currency control

The volatility in exchange rates over the last year have highlighted the importance of holding assets in different currencies. QROPS can hold a mix of Pounds Sterling, U.S. Dollars or Euros.

No need to buy an annuity

Most retirees on retirement will take a tax fee lump sum (25%) with the remainder being used to purchase an annuity. To make matters worse, on your death your widow will receive a reduced pension (50%) and on her demise you cannot leave it for your heirs. If you transfer into a QROPS you will not have to buy an annuity (unless you want to) and the balance will be distributed to your heirs appropriately without the need for probate. These benefits apply immediately even if you have been out of the UK for less than five years.

Tax savings for your heirs

Pension rights transferred into a QROPS escape UK inheritance tax. Inheritance tax at the nil rate band is $325,000 for the 2010/2011 tax year. Above that, inheritance is taxed at 40%. There is an extra $55,000 allowance if your wife is not domiciled in the UK.

Tax efficiency for you

After 5 years, you will no longer need to report to the HMRC. Implementing the correct strategy with the help of a financial advisor can mitigate income tax, capital gains tax and inheritance tax.

What about a 100% lump sum?

Contrary to what many advisors may suggest, QROPS do not allow people to take more than 25% of their fund as cash. If you were to take more than this, HMRC could impose a 55% penalty, even if you had been a non-UK resident for more than five years.

What if I have already been a non-UK resident for more than 5 years?

After you have been a non-UK tax resident for five complete tax years, all reporting requirements to HMRC cease (as long as you remain a non-UK resident). You can transfer your pension into a QROPS at any time but we only recommend that you do so if you are, or plan to be, a permanent non-UK resident.

Is a QROPS beneficial for everyone?

Not always. Final salary schemes in the UK offer guaranteed income as well as built-in annual increases linked to inflation or a statutory amount. A suitability report would need to be prepared to make a reasoned analysis. Smaller pensions are better off in the UK as there are certain minimum charges incurred upon transfer to QROPS.

Can I move an annuity into a QROPS?

No. An annuity is a structured investment that you buy with a pension that pays you a set income each year. If you have purchased an annuity in the UK already, there would be no advantage of moving into a QROPS.

Who provides QROPS?

There are many providers of QROPS. All QROPS providers must be approved by HMRC in the UK. Theses schemes will have varying charges and structures, so it is important for you to consult an independent financial advisor who can write a suitability report for you to determine whether a QROPS is right for you.

QROPS (Qualifying Recognised Overseas Pension Scheme) is a scheme in which you can transfer most types of UK pension offshore (e.g. Guernsey) in order to avoid buying an annuity and become tax efficient. It is designed for expats who live abroad and do not intend to return to live in the UK.QROPS (Qualifying Overseas Pension Scheme) is a way to retake control of your Uk pension overseas. UK pension regulations permit the transfer of UK pension rights to overseas schemes provided the overseas scheme is a QROPS. If you already in Thailand, Laos, Cambodia or Malaysia or intend to move here, a QROPS allows you to unlock your pension and obtain your pension cheques as per normal. Anyone that has worked in UK (even as a non-UK citizen) may be eligible for a pension transfer. QROPS is approved by HMRC & our pension specialist are UK experts based in Bangkok & can give you independent advice; Our recommendations are based on your needs and the specific pension particulars you have. A QROPS transfer give you tax benefits for plus other excellent benefits. Receive our no obligation pension assessment now from Bangkok Thailand. It is vitally important to choose a UK qualified financial adviser when reviewing your options and our experts have been in the business for years.

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Check this excellent article if you wish to invest your life savings into a fund management group. Handy article to know  

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