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Data direct from Her Majesty’s Revenue & Customs (HMRC) shows that during the first half of this year there were more pension transfers into Qualifying Recognised Overseas Pension Schemes (QROPS) in Guernsey than any other jurisdiction globally.

The HMRC figures show that of the total number of pension transfers out of the UK into QROPS between 1 January 2011 and 30th June 2011, 32% went into QROPS based in Guernsey. New Zealand was the second most popular destination at 28%, Australia third on 20% and then the Isle of Man at 5%, followed by Hong Kong and Malta both on less than 1%, with the remainder a combination of smaller numbers to a variety of other centres.

The figures show that the value of funds transferred into QROPS globally was £121.5 million in 2007, before trebling to £358 million in 2008 and then rising to £366 million in 2009 and £471 million in 2010. That took the cumulative total of funds transferred of more than £1.3 billion by the end of last year and it is projected that the amount transferred during 2011 could pass the £500 million mark.

The HMRC figures for numbers of transfers from 2007 through to the end of June 2011 show that 47% have been made to Australia, 23% to New Zealand and 10% to Guernsey, followed by 2% to the Isle of Man, 1% to Hong Kong and less than 1% to Malta, with the remainder a combination of smaller numbers to a range of other centres.

However, the figures solely for the first six months of this year show a different picture, with Guernsey out in front, followed by New Zealand and then Australia.

HMRC Data Shows Guernsey Leads in QROPS Transfers

Data direct from Her Majesty’s Revenue & Customs (HMRC) shows that during the first half of this year there were more pension transfers into Qualifying Recognised Overseas Pension Schemes (QROPS) in Guernsey than any other jurisdiction globally.

The HMRC figures show that of the total number of pension transfers out of the UK into QROPS between 1 January 2011 and 30th June 2011, 32% went into QROPS based in Guernsey. New Zealand was the second most popular destination at 28%, Australia third on 20% and then the Isle of Man at 5%, followed by Hong Kong and Malta both on less than 1%, with the remainder a combination of smaller numbers to a variety of other centres.The figures show that the value of funds transferred into QROPS globally was £121.5 million in 2007, before trebling to £358 million in 2008 and then rising to £366 million in 2009 and £471 million in 2010.

That took the cumulative total of funds transferred of more than £1.3 billion by the end of last year and it is projected that the amount transferred during 2011 could pass the £500 million mark.The HMRC figures for numbers of transfers from 2007 through to the end of June 2011 show that 47% have been made to Australia, 23% to New Zealand and 10% to Guernsey, followed by 2% to the Isle of Man, 1% to Hong Kong and less than 1% to Malta, with the remainder a combination of smaller numbers to a range of other centres.

However, the figures solely for the first six months of this year show a different picture, with Guernsey out in front, followed by New Zealand and then Australia.

Australia QROPS – Is it right for you?

Australia is one of the most popular destinations for emigrating Brits, with 56,000 people moving across the pond in 2008 alone. If you are lucky enough to be starting a new life down under, you won’t want to be leaving your retirement savings behind. Therefore you need to consider where  you move your pension and what jurisdiction is most suitable for your needs.The Australian Rules
This is one of the most important criteria to look at when deciding where to move your pension.

• if you want to move your pension to Australia it must go in to an Australian Super Annuation scheme and this must be done within 6 months of moving to be tax free.
• Australian Super Annuation’s are taxed on growth and the income can be drawn down tax free.
• Retirement age in Australia is 60 and the capital cannot be accessed before this time.
• Once the pension is in Australia, it is virtually impossible to move it back out and can cost up to £20,000 to embark on the process.

UK Tightens Rules

The UK Government has moved to tighten up the rules around its qualifying recognised overseas pensions schemes (QROPS) arrangements in a move likely to impact some financial planning companies in both Australia and New Zealand. The UK Government outlined its intended changes in early December and we have outlined a few of the most significant ones below;

• Requirements for the transferring saver to provide more detailed information before the transfer takes place, including a declaration that they understand that tax penalties could apply.

• There is a requirement for the UK scheme to pass information relating to the transfer to HMRC within 30 days of the transfer taking place and the overseas scheme to report all lump-sum payments made from their scheme in the 10 years following the transfer.

• The overseas provider must also provide more information about their scheme and the individuals running the scheme, including the names and addresses of the directors of the Qrops provider.

An HMRC statement says: “The Government has found that Qrops are being marketed extensively as a way of paying amounts or enabling the payment of amounts that are not allowed under UK rules (in particular 100 per cent lump sums) once the UK tax rules no longer apply.