Why Do You Need QROPS Specialists?
QROPS Specialists – UK pensioners who plan to reside abroad have a lot to thank the office of Her Majesty’s Revenue and Customs for the new taxation rules implemented in 2006. One of the major changes introduced in this new tax regime is the Qualified Recognised Overseas Pension Scheme or the QROPS. This new pension system will enable UK pensioners who plan to live abroad to transfer their UK pensions to a QROPS. QROPS specialists can advise on subsequent adjustments to this particular taxation system introduced in 2010 has added a feature that will enable pensioners abroad who have already established their QROPS to withdraw 30 percent of their pension fund in a one-time, tax-free lump sum.
Do you need QROPS specialists?
The aim of QROPS specialists is to offer pensioners living outside of the UK to have more financial freedom and control over their pensions wherever they may be living. To be able to set up this scheme, the pensioner must consult HMRC QROPS specialists who will have the knowledge and ability to establish the pension scheme.
Another great feature of the QROPS is that it follows the tax laws of the country where it is established. Where the country does not impose a tax on pensions then the QROPS will be operated tax-free. The advice of QROPS specialists is quite important if this particular pension scheme is to work the way it was designed. One invaluable service these specialists can provide is to help pensioners avoid the high tax rates in the UK. Tax increases in the UK for the year 2011 alone is a staggering 50 percent on income tax, 27 percent on capital gains, 40 percent on inheritance and 42.5 on dividends. Over the coming years, personal allowance will be gradually reduced to zero, which will translate into even more tax burdens. Pensioners can establish their QROPS in places like Guernsey or the Isle of Man to dramatically reduce their pension tax burden. In fact if the QROPS is established in the most ideal way, the pensioner may end up not being taxed altogether. How does one go about this? They need not just general financial advisers but QROPS advice specialists.
Why you do need QROPS specialists
The QROPS is highly susceptible to unscrupulous and fraudulent practices and can be manipulated many different ways. Because of this the HMRC has set forth a set of rules and regulations to be followed for setting up this pension scheme. QROPS specialists are well versed on these rules and can help pensioners differentiate legal from fraudulent QROPS. The best QROPS specialists are those who will sit down with you and analyze your pension properly. They should be able to tell you the benefits you the benefits you are currently receiving as well as the expected benefits should you elect for a QROPS. But the most relevant advice they can give you after analyzing your pension is whether or not it would be prudent to set up a QROPS pension. If you do not really have a sizeable pension and estate then setting up QROPS will not yield modest benefits. Your QROPS specialist should be able to relay this type of reality check to their customers.
The HMRC has a list of qualified QROPS specialists who can offer free consultation to pensioners planning to avail of the pension scheme. If you need QROPS Specialists, contact us today.