If you have been non-resident in the UK for tax purposes for five complete tax years then the value of your QROPS at the date of your death will be paid in accordance with the scheme rules. Usually this will take the form of a lump sum payment to the beneficiary or beneficiaries that you nominated.

Other options may be available for the payment of death benefits that would create valuable tax planning opportunities.

No tax is payable in Guernsey and depending on the tax rules that apply in your country of residence you may be able to leave your pension to your beneficiaries without the deduction of tax.

If you have been non-resident for less than five complete tax years then the usual UK rules apply:

• If you are drawing a pension using income drawdown prior to age 75, the residual pension fund can be paid as a lump sum to your beneficiaries, subject to a tax charge of 55%
• If you were to die after age 75, then any lump sum paid to your beneficiaries (excluding charities and political parties) is liable to tax at 55%.