QROPS Still Best Bet Whatever Your Political Persuasion

Online, February 4, 2011 (Newswire.com) - QROPS - Qualifying Recognised Overseas Pension Schemes - still remain the best bet for protecting your hard earned pension pot if you have made the move abroad, according to QROPS experts Expat Pension Providers Ltd.

Managing director Angela South said that UK expats living abroad should take a long hard look at their finances in the light of the new government and an impending Budget which has been promised for June 22.

She pointed out that although both parties in the new UK coalition government had pledged to remove the requirement to purchase an annuity by age 75, there would still be significant tax liabilities which could be incurred by leaving a pension fund in the UK.

"Using a QROPS, you can leave your full remaining pension fund to your intended beneficiaries without any tax.

"If you are in a drawdown arrangement in the UK, whether aged 75 or over, your nominated beneficiaries will receive the whole fund, but only after it has been subject to a 35 per cent tax charge.

"If the Conservatives and Liberal Democrats follow what appears to be their stated intentions and remove the requirement to purchase an annuity by age 75, we would still say that QROPS is clearly the better option," she said.

A QROPS is an HMRC approved scheme that enables individuals to move their pensions abroad and then access it free of all UK taxes after they have been non-UK resident for five complete UK tax years.

Angela South explained: "The investments within the plan remain UK-based and we can advise you on portfolio planning and where to invest. As specialist investment professionals we can make sure that you make the most of your pension fund and have more flexibility and choice."