Table Of Contents
- What You Need To Know About QROPS in Cape Town
- What Exactly Is QROPS In Cape Town?
- Who Can Benefit?
- Benefits Of QROPS In Cape Town Includes
- Are QROPS Schemes Suitable For Everyone?
- List of QROPS Approved By HMRC
- Countries With QROPS Schemes Include
What You Need To Know About QROPS in Cape Town
Many people around the world; who have lived and worked in the United Kingdom, are looking for ways to claim their UK British Pension that are frozen in the UK.
Make sure to check our in depth guide to UK Pension Scheme planning. It will help you make an informed decision for your future investments.
Qualifying Recognized Overseas Pension Schemes are meant to provide secure and safe retirement income for pensioners living abroad.
Since it was found, the scheme has received more than £1.3 billion in transfers.
Initially, Guernsey was a widely accepted jurisdiction for a transfer. However, since the new HMRC rules were implemented in 2012, other jurisdictions such as Malta and Gibraltar have been approved by HMRC and have proven to be very attractive to many South Africans considering transferring.
Although Guernsey was removed from the list by HMRC, Malta and Gibraltar are members of the EU. A pension saver may be a tax resident in South Africa, but the pension resides in Malta or Gibraltar. You should note that pension money grows free of capital and income gains tax, provided you have been or you intend to be a non-UK resident for a minimum of 5 complete years.
What Exactly Is QROPS In Cape Town?
It is a non-UK pension scheme recognized by British authorities as an eligible means of transferring funds from UK registered pension funds.
A good advice will recommend transfers to countries that offer consumer protection greater or equivalent to safeguards in the UK.
Individuals living inside the UK or overseas can transfer their personal pensions.
As a matter of fact, the scheme allows the transfer of any pension provided an annuity has not been purchased.
In addition, if the pensioner has not been living in the UK for five years, HMRC restrictions on how capital and income are spend do not apply.
Who Can Benefit?
If you are considering retiring overseas and living in a foreign country for five years or more, you should know that the amount of money you pay on income and the capital you receive will be decided by the taxation of your country of residence and where it was founded.
For instance, expats living in Cyprus can choose to pay a fixed rate of 5% tax on all income above a personal allowance.
They can also opt to receive a high personal allowance and pay high income tax rates on any income in excess of their allowance.
You should go for an option that suits your personal circumstances and it’s also recommended to seek advice from professionals who will take into account your individual objectives and needs.
UK Pensions That Can Be Transferred To A Include:
You call also transfer state or British Government pensions
Benefits Of QROPS In Cape Town Includes
The members have greater flexibility and choice in when and how their pension is drawn down and allows members to take a larger annual pension income than what is currently possible with UK annuities.
If the member and his nominated beneficiaries are non-UK residents for a minimum of five tax years, and the member passes away, 100% of his residual pension will be paid without liability to any UK tax
Increased Tax Free Retirement
Schemes can confidently pay a lump sum of 30% of the value of money at retirement age, which can be disbursed as early as the age of 50 in certain jurisdictions.
The tax free retirement lump sum limit for UK schemes is currently at 25% and 55 years as the earliest retirement age.
Its Pension Income Is Tax Efficient
Just like other UK pensions, QROPS may be subject to deduction of tax at source, but a few jurisdictions may offer favorable tax rates than the United Kingdom.
Another thing that you need to consider is the effects of Double Tax Agreements that may exist between the country of residence during retirement, such as South Africa and the country where your pension resides, such as Malta.
Currency Of Choice
UK pension can only be received in Sterling pounds, but it allows its expatriate clients to get their pension in the currency of their country of residence, hence eliminating foreign exchange risks.
Are QROPS Schemes Suitable For Everyone?
NO. A large number of British pensioners retire and live in the United Kingdom; therefore, they must pay UK taxes.
but funds more than £100,000 can generate enough tax savings to justify the set-up cost, which vary from 1% to 5% of the fund transferred.
For a more in-depth look at pension options, have a look at our article “QROPS Explained“.
List of QROPS Approved By HMRC
There are many different options available and it is important that you transfer your pension fund to a scheme that is recognized so that you are protected, please get in touch with us if you are looking for QROPS in Cape Town
Read our detailed article about QROPS South Africa Transfer For British Expatriates.
This provides a reasonable and fair ground for HMRC to discharged liability of the member to unauthorized payment surcharge in the future. Here is a list of QROPS approved by HMRC:
Capital Corporation CC HK ORS. HK QROPS
Set fee of £2500 and an annual fee of 0.5% or £1500
Boal & Co. Isle of Man QROPS
Set up fee or £1250 and an annual fee of £1250
Concept- Skandia. Guernsey QROPS
Set up fee of £995 and an annual fee of £995
Close. Guernsey QROPS
Set up fee of £750 and an annual fee of £1000
Marlborough Shearwater. Guernsey QROPS
Set up fee of £1500 and an annual fee of £1500
Sovereign Calpe Retirement Benefit Scheme. Gibraltar QROPS
Set up fee of £1350 and an annual fee of £1350
Gower Horizon. Guernsey QROPS
Set up fee of £1000 and an annual fee of 0.75% of fund value
Other QROPS Schemes Include:
Bourse, STM Gibraltar, Brooklands, Firburn, Gower Horizon, Momentum.
Countries With QROPS Schemes Include
- Australia QROPS,
- Barbados QROPS,
- Belgium QROPS,
- Bermuda QROPS,
- Canada QROPS,
- Bulgaria QROPS,
- Greece QROPS,
- Bangladesh QROPS,
- Czech Republic QROPS,
- Denmark QROPS,
- Cyprus QROPS,
- Finland QROPS,
- France QROPS,
- Gibraltar QROPS,
- Guernsey QROPS,
- Hong Kong QROPS,
- India QROPS,
- Germany QROPS
- Denmark QROPS,
- Hungary QROPS,
- Isle of Man QROPS,
- Belgium QROPS,
- Iceland QROPS,
- Germany QROPS,
- Latvia QROPS,
- Ireland QROPS,
- Italy QROPS,
- Jamaica QROPS,
- Jersey QROP,
- Liechtenstein QROPS,
- Luxembourg QROPS,
- Malta QROPS,
- Malaysia QROPS,
- Mauritius QROPS,
- New Zealand QROPS,
- Norway QROPS,
- Portugal QROPS,
- Russian Federation QROPS,
- South Africa QROPS,
- Spain QROPS,
- Netherlands QROPS,
- Slovakia QROPS,
- Switzerland QROPS,
- Sri Lanka QROPS,
- USA QROPS,
- St Vincent and The Grenadines QROPS,
- Trinidad and Tobago QROPS,
- Sweden QROPS,
- Trinidad QROPS,
- St Lucia QROPS,
- Turkey QROPS.
The Guernsey and Isle of Man use to be the most popular pension schemes, but they have fallen out of favor due to changes in regulations. The Isle of Man QROPS attracts an income tax of 20%. The most widely used schemes today are Gibraltar Zealand and Malta.