Frequently Asked Questions
The following are some of the most commonly asked questions about The Westerby International Retirement Plan.
When were QROPS introduced? QROPS came into being on pensions ‘A’ day, 6 April 2006, when the British government radically overhauled its pensions system. Since then, people with UK pensions who are, or will become, non-resident in the UK for tax purposes can move their pension benefits out of the UK to a QROPS.
Can UK residents apply for QROPS? Yes, however you are unlikely to benefit from the scheme unless you become a non UK resident.
Does my QROPS need to be held in my new country of residence? No, you can choose an alternative jurisdiction that is compatible with where you live to ensure proper regulation, tax efficiency and easy maintenance.
Can I transfer my pension to an overseas scheme that is not a QROPS? No, this is not possible as the providers of the scheme in the UK will only transfer to those on the HMRC list.
Can I transfer assets other than cash? We can accept almost any asset into our QROPS scheme, with the exception of residential property. There is no need to liquidate assets before transfer.
If I have bought an insurance company annuity, can I still transfer to a QROPS? No, you must transfer to a QROPS before you buy an annuity. If however, you are taking a pension income from your UK Pension Scheme, you can still transfer your funds.
Once I transfer my pension into a QROPS, will I have to buy an annuity? No. You do not need to purchase an annuity, you are free to invest in other assets and have the advantage of being able to pass these assets to your dependants upon death. However, in certain circumstances buying an annuity may be advantageous.
Can I transfer my state pension into a QROPS? No, QROPS is for private pension schemes only.
What will happen to my pension fund upon my death? This will depend on whether you have chosen to purchase an annuity. If no annuity is purchased, any funds remaining upon your death will be left to those nominated by you as your beneficiaries.
Can my QROPS fund purchase residential property? No, UK transferred pension schemes can not be used to purchase residential property.
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