If you are an expatriate living in Spain, or are considering moving to the country, it is worth considering the advantages of a QROPS (Qualifying Recognised Overseas Pension Scheme) and the benefits of the scheme offered through St. James's Place Wealth Management.
A QROPS is a pension scheme recognised by HM Revenue and Customs (HMRC) that can be used by people who are resident overseas. A QROPS receives qualifying status from HMRC when they can confirm that it meets standards and conditions equivalent to a UK pension.
A person living outside the UK who has benefits in a UK Registered Pension Plan can transfer their benefits to a QROPS and obtain their retirement benefits from a QROPS plan.
At St. James's Place Wealth Management, the "COPIA Retirement Plan" administered by Kleinwort Benson Guernsey Trustees Ltd is available to clients. The plan is written under Guernsey legislation.
- Benefits may be transferred from a UK plan without the deduction of UK tax (unless you exceed your lifetime allowance*);
- Income paid out from the QROPS will be paid gross
- Benefits can be paid in a currency other than sterling
- The pension fund will be invested in an International Trustee Bond, which benefits from the
St. James's Place Approach to Investment Management.
- After taking benefits and on death before age 75, 100% of the QROPS fund is available for distribution compared with only 45% of a UK pension fund (i.e less 55% tax). Please note this is subject to the client being non resident for 5 or more tax years.
Please see below for the eligibility requirements for the QROPS scheme provided by Janine Edwards, Senior Partner of the St. James's Place Partnership.
- Must be over the age of 18 and under the age of 75
- Are already non-UK resident, or be planning to leave the UK in the next 12 months
- Must not have already used their UK pension fund to purchase an annuity or be in receipt of benefits from a final salary pension scheme
- Generally suitable for individuals with pension funds of at least £300K
Please note:
- The advantages of a QROPS are subject to the client being non resident for 5 or more tax years, if this is not the case then the rules of the UK are still in force – this fact is crucial and I would suggest if none of the others are used, then this one should be.
- The Financial Services Compensation Scheme (FSCS) does not apply.
- We recommend you take full tax advice when resident in Spain.
- *Transfers out of the UK and into a QROPS scheme will be subject to a lifetime allowance test, if the fund value is greater than the lifetime allowance at the time, a Lifetime Allowance charge of 25% of the excess will be charge.
If you would like to discuss how you can benefit from QROPS, please complete your details below or contact us for more information.
