QROPS or Qualifying Recognized Overseas Pension Scheme, as the name suggests, is a type of overseas pension scheme. This scheme completes certain conditions, so that it can be recognized by Her Majesty’s Revenue and Customs (HMRC). QROPS is primarily availed by U.K. pensioners who have a plan to move to abroad after their retirement. It is also applicable to people born abroad who have build up benefits in an HMRC approved U.K. pension scheme and who decide to return to U.K.
QROPS pensions transfer has always proved a better option than any other pension plan and it is the first choice of people who are planning to settle abroad after their retirement and enjoying the benefits of U.K. pension schemes. Many people have this misconception that QROPS pensions transfer scheme is a tool devised for the rich to escape from income tax, but it is not so.
Who is Eligible for QROPS Pensions Transfer?
Any person with a frozen or private U.K. current pension, living overseas as an expatriate or planning to live overseas as an expatriate within the next 12 months, can be said eligible to transfer his/her pension funds to his current country through QROPS providers services.
Following are some conditions that are necessary to be fulfilled in order to make use of pension transfer scheme from the U.K. to other countries:
What are the Primary Benefits of QROPS?
The primary benefits of QROPS pensions transfer can be listed as under:
Costs involved in Pension Transfer?
Costs incurred on QROPS pension transfer are nothing when compared to the benefits provided by it. These costs vary with your U.K. pension amount. The higher the pension value, the lower are the costs. Generally, following costs are involved: