There are serious tax implications if the scheme turns out not to be a QROPS, including unauthorised member payment and surcharge, as well as a scheme sanction charge.

The scheme sanction charge is 40% of the transfer value payable by the pension scheme. The unauthorised payments surcharge is 15% of the transfer value and would be payable by the individual.

You do not have to be resident in Guernsey to have a Guernsey QROPS. Guernsey does not withhold taxes on investment growth or benefits paid from pensions where the member is not a resident of Guernsey and has not received tax relief on contributions made whilst resident of Guernsey.

If you return to the UK then the transfer will have a neutral affect as UK pension regulations will apply to the QROPS. Therefore a transfer should usually only be considered by those who intend to live outside the UK permanently.

It is possible to transfer a pension where benefits are in payment provided that they are not from an annuity or certain company pension schemes.

Direct investment in residential property is not permitted with UK tax relieved pension funds regardless of your country of residence or the period of time that an individual has been non-UK tax resident.

Residential property investment is permitted through a genuinely diverse commercial vehicle.

It is possible to transfer protected rights to a QROPS. However, you will forfeit the protection afforded by the UK pension regulations.

We recommend that you seek advice from a suitably qualified financial adviser before making your decision to transfer.

It is possible for a QROPS to receive assets transferred from a UK scheme. However, both the UK pension and QROPS must be willing and able to complete the transaction.

Pensions whether in payment or not (pre and post 75) can be transferred to a QROPS. A QROPS is not subject to the Lifetime allowance therefore no further tests would apply.

Transfers to a QROPS post-75 will not be a BCE.

Uncrystalised

Any transfer of uncrystalised pension rights pre-75 will be a benefit crystallisation event.

If any of the transfer is above the available lifetime allowance the excess will be taxed at 25%. If the pension rights are protected then the lifetime allowance charge should not apply.

Crystallised

Transferring a pension in drawdown to QROPS pre-75 will be a BCE if the drawdown commenced after 05.04.06, it is not a BCE if drawdown commenced before 05.04.06.

A UK pension can make an in specie transfer of commercial property to The Overseas Pension - QROPS. We have been advised that no stamp duty is payable on the transaction unless the property is mortgaged and in which case stamp duty is payable on the value of the debt.

When the property has been transferred all of the rental income less any allowable expenses would be taxed at 20% when held by an offshore company.

Any capital gains would continue to be tax-free.

If the member has been UK tax resident in any of the previous 5 years then the income would be subject to the same restrictions as in the UK i.e. income restricted by the G.A.D. calculation.

If the member was not UK tax resident in any of the previous 5 years then the income would be in line with Guernsey rules. Guernsey rules allow for the actuarial calculation of income thus members in poor health, who are older and/or have greater risk tolerance, may be able to take a relatively high level of income.

We are aware of developments to structure a QROPS that is compatible with US tax laws and we hope to have further information available in the near future.

Guernsey does not tax non-Guernsey and non-Jersey residents, thus income payments and pension commencement lump sum benefits are paid without the deduction of tax.

However, it is imperative that tax advice is taken in your client’s country or intended country of residence. For example: Australia operates a system that favours smaller transfers to be made to a local scheme but larger transfers may be more complicated.

No. The Overseas Pension is a genuine pension scheme and as such a maximum lump sum of 30% is available along with a lifetime income.

Considering there is no need to buy an annuity and after 5 years non-UK tax resident the fund is free of tax on death, it’s questionable why you want to take 100% from a tax efficient environment.

Yes it is possible to transfer from other QROPS providers subject to trustee approval.

A Qualifying Non UK Penson Scheme is a flexible, tax efficient, international pension scheme. A QNUPS has no HMRC reporting requirements.

Provided that you have been non-UK tax resident for 5 complete tax years or more then yes it is possible to transfer your QROPS to our QNUPS.

In common with the vast majority of the QROPS available to the public our QROPS is investment regulated. As The Overseas Pension does not hold any taxable assets transfers to our QNUPS are available* without tax implications. * Transfers are available if you have been non-UK tax resident for 5 complete tax years or more.