With the ability to escape from UK income tax and enjoy a more flexible pension regime, QROPS are worth a look for most members of private UK pension schemes. Unless you are one of the dwindling number of people with a final salary arrangement that is still worthwhile even after UK tax and exchange rate fluctuations are taken into account, many British expats find that a QROPS offers them a better deal than leaving their money behind.

However, one of the first things you may notice about QROPS shopping is the diversity of choices available. After all, there are well over one thousand schemes available to accept transfers of UK pensions. Which one should a British expat choose?

Like other financial decisions, what suits one investor may not be the best solution for another.  For example, if you need access to a sizeable lump sum from your pension early on in your retirement for whatever reason (perhaps to finance the purchase of your retirement home abroad), then finding a scheme which permits this is a priority.

On the other hand, if your other assets are structured in such a way that your estate’s potential inheritance tax liabilities concerns you, then you may be more focussed on finding a way to manage your retirement finances in such a manner that will mean that your children and grandchildren will benefit from the residue when you have gone.

Another key consideration for most people is tax. But if your QROPS is located in a different country to you, you need professional advice about how your QROPS jurisdiction and your new country of residence will work together regarding tax.

QROPS.net can advise you on this point, and suggest QROPS jurisdictions that offer the best products for you that are subject to favourable tax treatments. We listen fully to our clients’ plans and ambitions, and pick out QROPS that will suit their needs.

In their case, pension funds were transferred from the UK in to a QROPS scheme that was included on the HM Revenue and Customs QROPS list and later removed.

Speculation runs rife as to exactly what caused the delisting, but at the end of the day, what really matters are some key QROPS facts:

How do you know if your QROPS is an recomended scheme?

Answer – you don’t. This is because the QROPS list is not an recomended rating by HMRC but a list of QROPS providers who have self-certified their schemes meet the QROPS rules to accept transfers from the UK.

Forget that HMRC approved QROPS marketing hook. As the Panthera case shows, the taxman can act retrospectively to delist a QROPS provider or tax jurisdiction at any time without giving any public reason.

The taxman will not comment on individual cases and it’s unlikely any provider is going to admit breaking QROPS rules, if this was the alleged reason for them being delisted.

The result is anyone considering a QROPS transfer needs to take regulated advice from an independent financial firm with a successful track record of effective QROPS pension transfers to respected financial jurisdictions, like QROPS.net.

If your money is stuck in a delisted scheme, what can you do?

This depends.  Technically, a Panthera client with a frozen fund in a Singapore QROPS should be able to transfer the fund on to another QROPS scheme. This transfer depends on the new scheme making the QROPS provider list and the old scheme agreeing to the transfer.

So far, no Panthera clients have tested this position in the courts.

The global economy is in a state of flux as the larger economic powers pressurise former tax havens in to lifting their curtain of secrecy for wealthy individuals, companies and financial organisations.

Countries that were popular a year ago are now looking at little rocky as long-term homes for your money – like the Cayman Islands, British Virgin Islands and other Caribbean financial hotspots.

HM Revenue and Customs has drawn a line – tax evasion anywhere will not be tolerated and action will be taken against those involved.

HMRC also hints that a continuous review of QROPS tax jurisdictions rolls on.

Last year, the QROPS status of providers in Singapore was withdrawn due to tax irregularities and the rock of Gibraltar does not look so solid at the moment.

Talks continue between HMRC and the local QROPS providers and tax authorities about income tax band irregularities that have led providers based there to hold off transferring any funds in to QROPS schemes.

QROPS provider representatives in Gibraltar were confident that the issue would be sorted out by the end of September – now we are pushing the end of October and still no news.

So where do you go to keep your money safe and secure?

The most popular QROPS countries are currently Guernsey, the Isle of Man, Jersey and New Zealand.

Of course, they all have a British connection in common that makes UK investors feel a little more confident, but then so do Singapore and Gibraltar.

A low tax environment comes high on that list when looking for a home for a QROPS – Guernsey compares well with the Isle of Man with 0% inheritance tax and 0% income tax comparing favourably with the Isle of Man’s 7.5% IHT and 18% income tax rates.

Making a decision with the whole of the world to choose from can be daunting, so perhaps the first and most important step in stetting up your QROPS is selecting an independent, professional QROPS.net who can cut their way through the sales pitch to tailor a product that matches your needs.

It will be an invaluable guide to help you decide what action to take and what advice to listen to.

To find out more in advance, contact us today

Each jurisdiction will have its own pros and cons, different tax regimes, different rules and regulations. It is how these effect you and your situation that makes a jurisdiction a “best” choice.

Not only is the QROPS jurisdiction important, but equally the actual QROPS provider needs to be examined. There are hundreds of QROPS available ranging from one man trustee offices in questionable jurisdictions to wholly owned expert pension trustee divisions of blue-chip merchant banks, located in highly regulated and respected international finance centres.

Understanding the differences of each jurisdiction and provider is what makes QROPS.net service indispensable. QROPS.net is the leader in QROPS advice. We are totally independent and since we are not tied to any individual QROPS provider, we can look at your situation and find the best QROPS in the best jurisdiction for you.

To find out more on how we can help you in your unique situation or for some friendly advice in plain English, contact QROPS.net by simply completeing the contact form and one of our senior advisers will contact you as a priority.