QROPS South Africa
We’ve put together the information that is important when considering retirement options.
A QROPS is a Qualifying Overseas Recognised Scheme. Easy as that…but what does it mean? It is advisable to download our guide which will quickly bring up to speed on the salient points.
Qualifying Recognised Overseas Pension Scheme
A QROPS is an offshore structure for individuals that reside outside the UK, but have a UK pension.
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Transfer UK pension to an overseas fund and receive more benefits than a British scheme.
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Look at various QROPS retirement funds to see what options are available to you.
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United Kingdom Pensions
UK pension transfers. Find out what your options are with the various retirement schemes.
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QROPS South Africa Questions?
- What is a QROPS?
- Will it Save Tax?
- Do I Qualify?
- What are the Benefits?
- What are the Costs?
- What if I live in South Africa?
The Basics and Benefits of QROPS South Africa
A Qualifying Recognised Overseas Pension Scheme was introduced in the United Kingdom in 2006. This overview will give you an idea of what it is all about; these are offshore retirement fund structures for individuals that reside outside the UK, but have a UK scheme.
QROPS is ideal for anyone who wants to move overseas for whatever reason, business or relocation, or if you just want to take a break and explore other countries after working in the UK. This is an amazing opportunity for those who have always dreamed of moving to other places after retirement.
Retirement arrangements are one of the things that are on the minds of people wanting to relocate out of home territory. Formerly, retirees who moved out of the United Kingdom had to keep paying income tax on funds received in the UK.
Transferring the pension from the UK to their current country of residence was not easy because of the various laws and regulations in place. However, with the introduction of QROPS, this has changed. Just by reading through this overview will give you an idea of its flexibility and ease of transfer.
Ease of Transfer
Fortunately, with the introduction of QROPS, anyone with a United Kingdom pension living in different parts of the world can now breathe easy and transfer their funds without much difficulty. In essence, these are schemes that fulfil the requirements of Her Majesty’s Revenue and Customs and assure the person that the scheme meets certain criteria.
Who Can Benefit?
There are specific requirements that need to be met before one is able to establish a QROPS ; most people with a personal, corporate, stakeholder or other retirement funds can transfer their funds overseas.
Furthermore, foreign nationals who have worked in the UK and have now returned to their country of origin can benefit; they will be able to transfer their UK funds through QROPS without much difficulty.
The Benefits of QROPS South Africa
Transferring a British fund to a QROPS offers many benefits including tax relief and increased control over your retirement funds. Some of the benefits of are:
- Retirement income is tax efficient
- Greater investment freedom
- Tax free lumpsum up to 30%
- Unused funds passed on to beneficiaries upon death
- No UK tax charge upon death
Why Use a QROPS?
Investing in this type of retirement fund will open up the possibilities of various tax effective investment opportunities which otherwise is not possible to United Kingdom investors. Using a QROPS will allow the user to set up a fund in one country and live in another, while at the same time allowing the investment to grow in a ‘low-tax” jurisdiction.
The individual will be able to reap the benefits in a variety of major currencies and also benefit from low income tax rates. This allows the user to save a major portion of income which otherwise will be lost by way of income tax.
This overview is to give you an idea of what QROPS is all about. There are several set retirement schemes that are available to choose from. You can check the HMRC website for more details on the available schemes.
You can also talk to our financial advisor who can go over this QROPS overview and answer any questions you might have.
“Very easy to follow guide. Thank You! It showed me what questions to ask my financial adviser.”
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