Qrops FAQ
How long does it take to transfer a QROPSIt usually takes between 1-3 months. The timescale increases in line with the number of pensions you are consolidating in to a QROPS
What is the level of inheritance tax to be paid?
Generally the level of inheritance tax due on death is much lower than leaving your pensions in the UK. The huge benefit to QROPS is that there is no IHT at source, therefore the main factor to consider is the jurisdiction of your beneficiaries. We strongly recommend professional advice should be sought on this matter.
What tax will I pay when I want to access funds from my QROPS
This entirely depends on the jurisdiction you reside in when you receive the capital. To find out more on this subject, please contact one of our specialists who can provide further information.
Can I transfer my UK state pension to a QROPS?
No
What is the age limit for accessing the capital once transferred?
Currently the age limit is 55, as per the minimum pension age in the UK. In some circumstances a investor can access their Pension Commencement Lump Sum before the age of 55, however there is qualifying criteria and we recommend you speak to one of our advisers for more information.
What is the maximum Pension Commencement Lump Sum I can take?
In most circumstances this is 25% however if you have been offshore for more than 5 years then this level increases to 30%.What is the five year reporting period?
The reporting period relates to the length of time your QROPS trustees must report back to the HMRC on the position of your scheme. This starts from when you leave the UK and not from when your QROPS started. The reporting period is in place merely so the HMRC can see your pension is still intact and nothing has occurred outside the qualifying criteria.
Seeking Professional Advice
Each clients circumstances are unique and there are numerous variables that mean seeking professional advice is crucial when considering moving your pension. The consequences of moving your pension to an inappropriate scheme can have significant tax penalties and is a process that is potentially irreversible. Our consultants can provide you with independent advice to ensure you arrive at a solution that best fits your individual requirements.
