Browse > Home / Benefits

Qrops Benefits


As part of an independent financial advisory group, we can offer you a service that many others cannot through our offices and sister companies in various jurisdictions around the globe.  We receive requests for advice and either deliver the advice ourselves or pass it into our sister companies in various parts of the world.

Unique Features

Here are some of our industry leading Qrops advice features that may be available:

  • No Minimum Amount of Pension required.
  • Capped Fees - One fee for all charged with no increase even for larger transfers.
  • Husband & Wife Qrops - No initial charge, waiver of one initial fee.
  • Custom Built Qrops Solutions - For larger transfer requiring unique features.
  • Private Banking - Solution to allow your private banker to manage your funds direct.
  • Self Invest/Manage - Solution allowing for the Qrops member to self invest & manage their funds

QROPS Charges

Not all firms charge for advice in the same way. We will discuss your payment options with you and try to answer any questions you have. We will not charge you anything until you have agreed how we are to be paid.

We can be paid by a fee

In this case, whether you buy a product or not, you will pay us a fee for our advice and services.

We can be paid by commission (or product charges)

If you buy a financial product, we will normally receive commission on the sale from the product provider.

We can be paid by a combination of commission and fee

In some circumstances, we may also charge a fee on top of any commission we might receive.

Qrops Adviser offers these summarised solutions:

QROPS & Investment Advice

Individuals who require advice on QROPS and want expert pension investment guidance.

QROPS & Self Invest
Individuals who require advice on QROPS and have a financial adviser or want to self invest.

QROPS for Financial Advisers
Financial advisers & firms wanting to offer the best QROPS solution to their clients.

There can be huge benefits for expatriates who transfer their UK pensions to a QROPS. However as a QROPS transfer may not be suitable for everyone, professional advice is imperative, that is why our service is valuable.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future.

No Liability to UK Tax on Pension Income

A non UK resident drawing a UK pension remains subject to UK tax on the income, unless he or she resides in a country with a double tax treaty with the UK that contains a provision on pensions. If the member resides in a country where there is no double tax treaty with the UK, they may be subject to a higher tax rate than is prevalent in their country of residence. Transfer to a QROPS can ensure that, if tax is due on pension income, it will only be taxable in the country of residence.

No Requirement to Purchase an Annuity or Alternatively Secured Pension

Members of UK registered pension schemes can currently defer taking their pension until they reach age 75. However, once the member turns 75, they must either buy an annuity to provide an income for life, or opt to take an Alternatively Secured Pensions (ASP). Either way, the member is effectively required to take an income regardless of whether they need it or not. The UK rules also limit the scope to leave the fund to the member’s heirs.

Depending on the specific scheme rules and the legal position in your country of residence, transferring to a QROPS may allow the member to continue to defer taking a pension beyond age 75.

Ability to Leave Remaining Fund to Heirs

The standard UK pension legislation significantly restricts the member’s ability to leave the pension fund to their heirs on death. If a member is drawing an unsecured pension prior to age 75, the remaining fund can be paid as a lump sum to heirs, less a tax charge equal to 35% of the lump sum.

If the member dies after age 75 in an Alternatively Secured Pension (ASP)), then any lump sum paid to heirs is potentially liable to inheritance tax at 40%.

Furthermore, the payment can also become liable to an authorised payment charge, an unauthorised payment surcharge and a scheme sanction charge, which can result in a total tax liability equal to 82% of the fund value.

QROPS can help to avoid this. Transferring a UK pension to a QROPS may allow the member to leave lump sums without deduction of tax to heirs.

Currency

A standard UK pension will usually only pay benefits in Sterling, which means that the member runs an exchange rate risk in respect of pension income, in addition to incurring charges in order to convert the pension payments to the currency of their country of residence.

Transferring to a QROPS means that the pension payments can be made in the local currency, thus reducing this form of exchange rate risk.

Investment Freedom

A QROPS may give access to investment links that are currently not available to UK registered schemes.

No Lifetime Allowance Charge

QROPS Members will no longer be subject to the Lifetime Allowance Charge.

The Lifetime Allow is a restriction on the total permitted value of an individual’s total accrued fund in UK registered pensions, this is currently £1.8m. Those who exceed this value face a potential tax liability of 55% on the excess funds on retirement.

Are there any risks?

Anyone considered to have abused the regulations may be subject to severe tax penalties of 55% of the pension fund for an unauthorised pension transfer on any wealth they still hold in the UK, or on returning to the UK.

The five-year rule means there is no benefit in having a QROPs until you have been or are certain that you will be a non-UK resident for five full tax years.

The financial services regulations in some jurisdictions may not be as stringent as the UK, meaning money may not be as safe as it is in a UK pension scheme.

The costs of QROPS arrangements and the fees being charged for advising on transfers can be high; our aim is to ensure this does not happen. Costs do, though, need to be taken into account when deciding whether to transfer.

A QROPS pension is just a means of holding an investment. Consequently, customers remain vulnerable to market movements which can result in their pensions losing value. Underlying investments have to grow more in order to pay for the charges involved in the pension and its transfer.

Transferring to a QROPS may result in the loss of certain protected rights, including contracted out rights, or guaranteed rights accrued under a defined benefit scheme. Our advisers will outline those relating to you situation.

More than ever, good independent advice is the key to making the right decision.