We’ve put together the information that is important when considering QROPS South Africa pension 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 QROPS points.
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 pension scheme and receive more benefits than a UK pension scheme.
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Look at various QROPS pension schemes to see what options are available to you.
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UK pensions and UK pension transfers. Find out what your options are with various UK pensions.
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QROPS South Africa Questions?
- What is a QROPS?
- Will a QROPS Save Tax?
- Do I Qualify for a QROPS?
- QROPS Benefits?
- QROPS Costs?
- What if I live in South Africa?
The Basics and Benefits of QROPS South Africa
QROPS or Qualifying Recognised Overseas Pension Scheme was introduced in the United Kingdom in 2006. This QROPS overview will give you an idea of what it is all about. A QROPS is an offshore pension structure for individuals that reside outside the UK, but have a UK pension.
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.
Pension 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 pension 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 QROPS overview will give you an idea of its flexibility and ease of transfer.
Ease of Transfer with QROPS South Africa
Fortunately, with the introduction of QROPS, anyone with a UK pension living in different parts of the world can now breathe easy and transfer their pension without much difficulty. In essence, QROPS are schemes that fulfil the requirements of Her Majesty’s Revenue and Customs and assure the person that the scheme meets certain requirements.
Who Can Benefit Under QROPS South Africa?
There are specific requirements that need to be met before one is able to establish a QROPS. Most people who have a UK pension scheme can benefit under QROPS. Most people with a personal, corporate, stakeholder or other pension scheme can make use of QROPS and transfer their funds overseas.
Furthermore, foreign nationals who have worked in the UK and have now returned to their country of origin can benefit from QROPS. They will be able to transfer their UK pension through QROPS without much difficulty.
The Benefits of QROPS South Africa
Transferring a UK Pension to a QROPS offers many benefits including tax relief and increased control over your pension. Some of the benefits of QROPS are:
- Pension income is tax efficient
- Greater investment freedom
- Tax free lumpsum up to 30%
- Unused pension funds passed on to beneficiaries upon death
- No UK tax charge upon death
Why Use a QROPS South Africa?
Using QROPS will open up the possibilities of various tax effective investment opportunities which otherwise is not possible to UK pension investors. Using QROPS will allow the user to set up QROPS in one country and live in another, while at the same time allowing the pension 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 QROPS user save a major portion of income which otherwise will be lost by way of income tax.
This QROPS overview is to give you an idea of what QROPS is all about. There are several set QROPS pension 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.
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