In 2006, the UK government relaxed the requirements regarding the transfer of pensions overseas for individuals leaving the UK permanently. Previously the pensions had to remain in the UK to avoid a charge on transfer overseas.
However, under the relaxed rules a UK registered pension can be transferred to a QROPS (Qualified Recognised Overseas Pension Schemes) which has been recognized by HMRC without any charge arising at the point of transfer, with the added benefit that the pension can then be ultimately drawn without any liability to UK taxation.
The Qualified Recognised Overseas Pension Schemes or QROPS is likely to have more generous tax-free lump sum rules, and furthermore there is no requirement to use the fund to buy an annuity on retirement, which will give the ability for the remaining fund to be bequeathed to the pensioner's heirs.
There are also certain ancillary benefits:
 Currency exchange risk can be avoided by converting the
fund from sterling to the individual's local currency, thereby
eliminating exchange rate risk, when the pension is drawn.
Investment freedom is greatly enhanced, allowing such
features as the direct investment in property.
Hansard Guernsey would be pleased to assist with the process of the transfer out of the UK to a QROPS in the new jurisdiction of residence of the individual concerned. There also exists the excellent opportunity to transfer the pension to a Guernsey based Retirement Annuity Trust Scheme (RATS) . . . more >
. |
 |
|
