QROPS are a different type of foreign pension schemes that receive transfers from UK-registered pension funds. At present, you can transfer into schemes based in your country or residence, however, transferring to a QROPS outside your country of residence will trigger a 25% UK ‘overseas transfer charge’. QROPS in Malta, Gibraltar and the Isle of Man have been sold heavily by offshore financial advisers, often promising significant benefits, but in reality these don't exist and are no more beneficial than a UK pension scheme. If you have already gone ahead with a QROPS pension transfer, we can help you to transfer to a SIPP so you can take back control of your pension. We will handle the transfer of your pension to ensure it goes as smoothly as possible with minimal fuss.
We have helped lots of our clients transfer their pension from these QROPS to our flexible, online SIPP account. A QROPS pension transfer to a SIPP is a simple process and just requires a set of forms to be completed which we can guide you through. An international SIPP may be much more beneficial for you and your pension transfer. From age 55 onwards, you can take 25% of your pension tax free, although this doesn’t have to be taken all at once, it can be paid in instalments as and when required. A SIPP will also allow you to make investment choice by your own account. We offer a much wider range of investments as the HMRC rules allow a SIPP to invest in; mutual funds such as Unit Trusts and OEICs, exchange traded funds (ETFs), investment trusts, direct shares in the UK and overseas and direct corporate and government bonds. If you find that you prefer the benefits and amenities that a SIPP can offer, then get in touch with us for a quick and hassle free QROPS pension transfer.
The UK has double taxation treaties in place with over 130 countries
A double tax treaty often ensures you're not taxed twice on any withdrawals, which really minimises any benefits of a QROPS pension transfer. The UK has double tax treaties in place with over 130 countries and most of these agreements ensure that withdrawals from your SIPP are only taxable in your country of residence. The SIPP provides flexible withdrawal options from age 55 onwards giving you total control over how to take your pension.
Another reason why a QROPS pension transfer may not be beneficial is that SIPPs are physically based in the UK and are offered by companies like us, who already work within the global marketplace and are able to understand the needs of international clients better than other pension schemes. SIPPs allow you to invest and denominate in a currency which is the most relevant, for example someone retired in the EU may be best suited with an account dominated in Euros. The UK double tax treaties mean you can be assured there's no unnecessary additional taxation incurred.
The trustee administration charge for a QROPS generally ranges from £650 to £1,250 per year. But its not just the annual trustee fee you need to be aware of, most QROPS have additional bond fees such as an establishment charge, policy management charge, quarterly administration charge, custody charge and ongoing adviser charge. All of these charges add up and could mean you're losing up to 5% of your pension every year in charges which is why you may need to consider a QROPS pension transfer to a SIPP. QROPS also has many fees that are hidden ‘implicit’ commissions that you may not be aware even exist, leaving you blind-sided with your money.
A QROPS pension transfer to a SIPP can save you thousands of pounds a year in charges and can make you feel safe with your money. With a SIPP, you can invest in shares, Exchange Traded Funds (ETFs), over 2,500 funds and more which makes a SIPP a great way to diversify your portfolio for retirement.
An international SIPP is now seen as the preferred option amongst the residents outside of the UK. It is the more viable alternative to QROPS overseas pensions. Our service is designed for expats, whether you're a non-UK resident or living in the UK. Our easy to use online account enables you to monitor your pension whenever you like. We handle all of our transfers promptly and have designed our forms to be easy to follow, so that everything is clear to understand and completed quickly and easily.
We are professionals who have a working knowledge of both local and international systems, and we aim to make every QROPS pension transfer as hassle free as possible. We know all the implications and processes of moving overseas, so we have a comprehensively tailored service specifically designed for expats. We provide ongoing support and guidance to assist you with managing your pension, and our simple and transparent fees mean there's no hidden commission or ongoing adviser fees.
Contact us to discuss a QROPS pension transfer.