FAQs

Listed below are answers to many of the frequently asked questions we receive about QROPS. The list of questions are updated on a regular basis.

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

Is there a minimum?

There are no minimum amounts required to transfer money from a UK pension plan to a QROPS, unless the QROPS itself sets these minimums.

Am I able to transfer protected rights funds into a QROPS?

YES - providing this is the best option for you.

Can I transfer benefits that are in payment to a QROPS?

YES - providing this is the best option for you.

Can I purchase residential property with my QROPS fund?

YES - providing this is the best option for you and subject to the conditions of both the scheme and the applicable legal or pensions regime.

When is it not a good idea to transfer to a QROPS?

Some pension plans have benefits such as guaranteed annuity rates that were set when interest rates were much higher than today and some have other guaranteed benefits and linked advantages such as enhanced protection in the event of early death or disability. In those circumstances it may be better to stay put. Some pensions are very much cheaper than those available through QROPS. Equally, for a very small pension, the cost of the transfer work and a possible increase in charges in the new pension may render the process uneconomical. All in all, it is important to seek appropriate advice.

Which jurisdiction is best?

There are numerous QROPS and jurisdictions. We look to place our clients in jurisdiction that offer strong investor protection principles which are similar to those associated with the UK.

My pension fund is of substantial value. Are there any tax issues?

You should consider registering for “enhanced protection”.

A transfer to a QROPS will be a Benefit Crystallisation Event and so will give rise to a tax charge if the amount transferred exceeds the individual’s unused lifetime allowance. This allowance, to which everyone is entitled. Thus before any transfer to a QROPS is finalised it is essential to check whether there is any possibility of this allowance being exceeded.

If so, a registration for an “enhanced protection” should be put in place before transferring to a QROPS. This is a straight forward process and removes any possibility of an attack on the transfer.

What are the costs associated with a QROPS? 

This depends on individual circumstances, the nature of the benefits and the QROPS chosen and the size of the pension being transferred.

Can I transfer the assets held within my UK registered pension scheme into a QROPS without first liquidating them into cash?

This depends.

If the assets are held within an insurance company based scheme then the funds in which you are investing will be converted into cash, and the transfer to the QROPS will be in cash.

If your existing registered pension scheme is a SIPP or a SSAS then it may be possible to transfer the existing assets to the QROPS, if the receiving scheme administrators or trustees are willing to accept them. This may depend also on the law in force where you transfer the assets and where you are resident.