Don’t take your QROPS advice form a man in the pub

QROPS pensions are one of the most tax effective offshore investments for anyone with UK pension rights who intends to live outside the country.

A QROPS gives flexible investment options, gets rid of the obligation to buy an annuity and puts the pension fund outside the reach of the taxman who wants a share as inheritance tax when the pension holder dies.

About 3,500 people transfer UK pensions in to QROPS schemes but thousands more just don’t bother.

One of the biggest problems for offshore financial advisers is the man in the pub who people want to seem to believe more than a professional.

This is because his ‘advice’ always tops what a professional has to offer.

Many offshore taxpayers who tried to avoid paying tax over recent years are seeing the pigeons coming home to roost after taking similar advice about their tax affairs.

A recent case in the High Court has given HM Revenue and Customs retrospective powers to throw artificial tax avoidance schemes.

Clients believe the man in the pub because he offers them a forlorn hope of keeping their money from the taxman. The problem is, when these tax avoidance schemes are challenged in court, they are almost always overturned, leaving the participants facing massive court bills and back tax including surcharges and penalties that more often than not lead to financial ruin.

Sometimes, these cases take years to filter through the system, and all that time the tax bill is increasing. The current case was seven years in the pipeline and has a tax cost of £100,000 attached.

Inevitably, the man in the pub who gave the advice has left to drink somewhere else, has no indemnity insurance or financial planning qualifications.

That’s why QROPS Adviser financial consultants are the professionals anyone who wants up-to-date and expert advice should listen to.

QROPS Adviser has a huge track record of successful QROPS pension transfers.

Clients also have the security of knowing that because the UK Financial Services Authority regulates the firm, they have an independent watchdog that will look after their interests in the event of any problems.