Pension Planning for Expats and Non-Residents
QROPS – Qualifying Recognised Overseas Pension Scheme
For individuals who have, or will become, non-resident in the UK, for example when leaving the UK to work or retire abroad, a QROPS can present considerable investment and tax advantages.
Introduced as part of UK pension changes in 2006, a QROPS is an overseas pension scheme which meets certain requirements set by HM Revenue and Customs (HMRC). Most notably, the pension scheme’s trustees are obliged to report significant events to HMRC, as long as the individual has been tax
resident in the UK at any time during the last 10 years. Examples of such reportable events include the payment of benefits (lump sum or income), death and onward transfer of the QROPS.
UK nationals resident in South Africa can achieve significant benefits by transferring their existing UK pensions into a QROPS. Holborn Private Wealth has many years of experience working with British expats and helping them transfer their pension assets from the UK and take full advantage of the QROPS
QNUPS – Qualifying Non-UK Pension Scheme
Introduced in 2010, a QNUPS offers numerous advantages to UK residents or those who have left the UK but retained their UK domicile status. The benefits include an exemption from UK Inheritance Tax and the ability to invest more than the usual annual allowance applicable to regular UK pension plans.
Moreover, besides assets which are traditionally part of retirement portfolios, such as funds, stocks, bonds or real estate, a QNUPS can hold a wide range of alternative assets, including art, antiques, vintage cars, boats or aircraft. Like QROPS, QNUPS are subject to reporting and other requirements set by HMRC.
Holborn Private Wealth can assist British expats and tax residents living in South Africa with all QNUPS related matters, including setup, transfers and all legal requirements.