QROPS PENSION TRANSFER

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paulsimkiss
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QROPS PENSION TRANSFER

Post by paulsimkiss » Sat Jun 11, 2011 1:27 pm

Do you Qualify for a QROPS Pension Transfer?

Anyone with a current or frozen pension in a European Union country, now living overseas as an expatriate or who is planning to live overseas as an expatriate within the next 12 months, can qualify for a QROPS Pension Transfer.

You will need to meet the following criteria:

You need to be between 18 and 75 years of age

You will need to be a non-tax resident for five, consecutive tax years

You need to have a private pension, as opposed to a state pension

You have not taken an annuity on your pension

You have not yet taken a payment from your 'final salary' scheme pension

Paul Simkiis IFA Email paul@globalinvestments.net www.qropdirect.com Tel Hua Hin 032 827 727

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barrys
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Re: QROPS PENSION TRANSFER

Post by barrys » Sat Jun 11, 2011 4:00 pm

Are you sure this applies to all EU countries?

I made extensive inquiries recently regarding a private pension in Ireland and I was told it is not possible.
If it is doable, I would certainly like to know more .....

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Re: QROPS PENSION TRANSFER

Post by PET » Sat Jun 11, 2011 5:17 pm

I strongly suggest that if you go the QROPS route, which is excellent if you qualify with 5 years residence outside UK and has huge tax free benefits that you make sure the fund has been approved by HM Revenue & Customs - there are many that have and there are top class banks in the Channel Islands who specialise in this, eg Close Brothers in Guernsey
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Re: QROPS PENSION TRANSFER

Post by cookmanchef » Sat Jun 11, 2011 9:57 pm

The five year rule, does that mean five financial years in which you haven't paid tax or claimed benefits?

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Re: QROPS PENSION TRANSFER

Post by PET » Sat Jun 11, 2011 10:08 pm

cookmanchef wrote:The five year rule, does that mean five financial years in which you haven't paid tax or claimed benefits?
No, it is 5 years say from the date you left UK for residence overseas
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Re: QROPS PENSION TRANSFER

Post by paulsimkiss » Sun Jun 12, 2011 12:57 pm

Reply for Barry Stone.
You have now told me by pm that your pension fund is in the Republic of Ireland.
So whoever told you it was not possible to transfer it, was wrong. However it does not come under the UK QROPS schemes as defined by HMRC because your pension fund is outside the UK. It does come under EU law governing the 1992 ''Freedom of Movement of Capital''. An offshore, international pension fund available to anyone living anywhere in the World that has a current or 'frozen' pension in a European Union member country. See http://www.europarl.europa.eu/factssheets/3_2_4_en.htm for more info.

The Republic of Ireland rules governing your pension transfer say:-

Transfers overseas. Overseas transfers must be approved by the Revenue. Must show that transfer is to a pension. Must show that pension which receives transfer is regulated. For further info call the Financial Services (Pensions) Business of the Revenue Commissioners - (01) 647-4022 www.pensionsboard.ie

Paul Simkiss IFA
email: paul@globalinvestments.net Website: www.globalinvestments.net www.qropdirect.com Tel: Hua Hin 032 827 727

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Re: QROPS PENSION TRANSFER

Post by paulsimkiss » Sun Jun 12, 2011 1:53 pm

5 Year reporting rules to HMRC.

The HMRC requires that all QROPS providers notify them of any payments from transferred pensions for the relevant member. This does not apply unless: Has not been resident in the UK for that year or any of the preceding five tax years.

Paul Simkiss IFA
Email: paul@globalinvestments.net Website: www.qropdirect.com Tel: Hua Hin 032 827 727

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Re: QROPS PENSION TRANSFER

Post by cookmanchef » Tue Jun 14, 2011 7:44 am

What exactly constitutes residing in the UK, for example if you spent 3 months there every year but did no work, does that count? Do they check passport records or just tax records?

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Re: QROPS PENSION TRANSFER

Post by PET » Tue Jun 14, 2011 8:03 am

I suggest you ask HMR&C in your case.

I believe you are entitled to 30 days in any year or upto 90 over a three year period.

IF HM want to be difficult I have known them to ask the person to prove they were outside UK, by requiring air ticket details and all credit card transactions.etc etc

If approached honestly I have found them very helpful
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Re: QROPS PENSION TRANSFER

Post by Noz » Tue Jun 14, 2011 10:25 am

UK tax residence/non-tax residence is unfortunately far more complicated than just a day count. If you're in full-time employment outside the UK (contract or permanent) then it might be as simple as a day count but for others, HMRC require your move abroad to be a "definite break" and can look at things like whether you have close family in the UK, property in the UK, where your "economic centre" is, bank accounts are, etc.... It's a very grey area and as far as I know, none of it is enshrined in law, so you're at the mercy of HMRC's judgement based on their own woolly guidelines.

The latest guidelines are below for those who fancy a headache:

http://www.hmrc.gov.uk/cnr/hmrc6.pdf

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Whaler
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Re: QROPS PENSION TRANSFER

Post by Whaler » Tue Jun 14, 2011 11:19 am

I think its 180 days over a 4 year period now as the self assessment form has changed.

I also understand the fund(s) must have a min value of 20K

If you have been a non tax residant for over 5 years means you have not been paying into these funds for the same 5 year period.

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Re: QROPS PENSION TRANSFER

Post by Dannie Boy » Tue Jun 14, 2011 1:53 pm

I think you will find that to qualify for non-tax residency status you have to be in the UK for less than 90 days on average over a four year period, but in any one year you can have up to 180 days.

For the 5 year ruling, you will need to be out of the UK for 5 complete tax years rather than calendar years, e.g. if you left the UK on the 1st April 2006 and remained within the 90 day average allowance, you would have achieved the 5 years non-residency on the 5th April 2011.

As others have said though, HMRC are attempting to make it more and more difficult to demonstrate that you have made a clear break from the UK and that you do not carry out "non-incidental duties" if you are working outside the UK, but perform duties in the UK. I guess that for most if you are looking into pensions, then you may have already retired (even if you are below state pension age), but it is a minefield and the onus is likely on you to be able to prove that you are non-resident, rather than HMRC having to prove that you are!!

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Whaler
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Re: QROPS PENSION TRANSFER

Post by Whaler » Wed Jun 15, 2011 3:48 am

Dannie Boy wrote:I think you will find that to qualify for non-tax residency status you have to be in the UK for less than 90 days on average over a four year period, but in any one year you can have up to 180 days.!!
Thanks for the correction :D

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Re: QROPS PENSION TRANSFER

Post by cookmanchef » Thu Jun 16, 2011 3:56 pm

Don't think I will qualify somehow. Haven't worked in the UK for about 3 years but spend on average 60 days there per year, own land and have property rented out and rent paid into a bank account. Sounds like it would be more trouble than it's worth to apply for it.

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Re: QROPS PENSION TRANSFER

Post by Veronica Mc » Wed Jul 06, 2011 1:39 am

We applied for our Qrops pension in December and was told we would receive it in April, its now July and we have still not received it....we was told April then May then June, then 1st July, and now been told it been sent to Aussie then they send it onto us, but they have no idea when this will be......So if any folks decide to do this be prepared for a very long wait!!! they also take 250 euros (in our case) to set up then 8% of the income :cuss:

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