Your UK Pension - To QROPS or not to QROPS

Ahhh, Wise words. You certainly need good quality and independent advice. There are trifling little details which if they catch you out are very expensive. This is true of all types of financial planning but particularly so with QROPS. For example, the 183 day rule or the average of 90 days a year in the UK in the last 4 years are not the ONLY determining factor regarding residency.

Living in Spain permanently as I do gives you a different perspective. This is particulalry important when dealing with QROPS. My company, the Spectrum IFA Group has qualified and experienced advisers from Gibraltar to the Costa Brava ( up the coast from Barcelona). The Spectrum IFA Group is also regulated in Spain.

For a cautious and conservative yet clear approach please visit http://www.expatfinancialadvicespain.com

The QROPS situation is moving on and so there is an updated page about QROPS at http://www.expatfinancialadvicespain.com/qrops-rules.htm

One thing which is becoming clear is that ther is more than one element to make a QROPS successful.

I couldn't agree more Barry, people using QROPS (if they really must) and any other Pension arrangement that is fully or partially subject to UK Registered Pension Scheme regulations need as much professional advice as they can muster and then some in order to ensure they do the right thing in the first place let alone have access to decent investment advice.

We are still coming across a steady stream of people who have "done QROPS" because "the financial adviser told us we had to now we are living in Spain/Portugal/France/Italy/Greece/etc" but there will always be black sheep in a family and the financial adviser family are no exception regulation or no regulation.

Fortunately we work closely with four of the largest and most prestigeous Financial Services organisations in the world and as a consequence can offer our clients the very best of advice and guidance in all aspects of "QROPS or not to QROPS". I'm sure Spectrum are the same, at least I hope so :)

As a result, probably only 30% of people who come through us actually "do" QROPS, the rest divest themselves completely of the UK Registered Scheme environment and all its rules, regulations, penalties, ceilings and hidden taxation; instead they transfer out of the UK Scheme environment altogether and enjoy complete freedom as regards how to use what are then ex-pension assets - the greatest joy they have is that there is no compulsion to purchase any annuity ever for any reason at any time and that there is no inheritance tax trap for those who want to pass those assets on to their beneficiaries.

As always, there is more than one way to skin a cat and to my mind, after all the initial hype, poor old QROPS is a most often a dead duck... well at least for most of the people who come to talk to us about their pensions anyway.

QROPS are coming of age, in part because HMRC is now starting to understand what it wants to acheive by allowing a peson to move a UK scheme to an Qualifying Recognised Overseas Pension Scheme (QROPS). Consequently, the UK Government have now "graded" schemes from different jurisdictions. We feel that it is important that only the countries that are considered "top Quality" by the UK Government are considered.

Please feel welcome to call if you have a UK pension and need further information.

Two quick Updates on QROPS.

Firstly, there can be some advantages to moving your pension to a QROPS even if you are going back to the UK. You will need individual advice and this is not correct for everyone.

Secondly, remember that you can keep your investments in Sterling when you do your Qrops. You do NOT have to convert your pension into Euros. If you believe that the exchange rate will get better again this is a very helpful option.

Hi All,

Barry and Rex are offering good advice. I was going through the whole QROPS debate with an older relative. I was recommended an Independent Financial Advisor who specialises in QROPS and he sorted everything out for us. It was a breeze and my aunt literally paid zero tax. She was delighted as it would have been tens of thousands in tax for her otherwise. I certainly don't know enough about the Tax laws and regulations myself so have to rely on good informative sites like this to at least get to grips with the basics. Thanks for the info Barry and Rex, my IFA Mark has the same 'keep it easy to understand' approach. Your time and effort is much apprecaited as it does seem a bit of a minefield. I don't know Mark's email address off by heart but his website is www.MF-qrops.co.uk Perhaps it would be worth you guys getting together somehow as industry experts and write a book or something etc. , anyway just a thought.

Best Wishes

John

Dear John,

Thank you for your kind words and I am pleased that your aunt has had her pension requirements resloved. May I just highlight a couple of points for other people, points which are very pertinent to expats considering QROPS. Like the person who helped you we are a QROPS specialists. The following points you should be aware of if you have a UK final salary scheme.

The austerity measures in the Emergency budget have added to the deficits for final salary schemes. Eg Royal Mail deficit now over 10 Billion The measures increased the deficits by 12 Billion in one month and a further 43 Billion by Christmas 2010.

The change to the rate of indexation announces by the Government will wipe approx 25% of your transfer value shortly.

The EU is proposing to introduce a new levy of 500 Billion on UK final salary schemes. This will kill some schemes, put the whole issue of the Pension Protection Fund and peoples benefits in jeopardy.

Individual advice is still vitally important. If you have a UK pension and wish to discuss how these changes may affect you please feel welcome to email me.

Barry

Pensions In the European Union


The EU's equivalent of a totalization agreement is known as EULISSES as regards State pensions. But for most expats, occupational pension schemes are a much greater preoccupation. The European Commission announced grandly in October 2005 that workers switching jobs or countries would no longer have to worry about substantial loss of work pension benefits under the 'portability of pensions' Directive that it had proposed. Previously, changing job or country could mean losing occupational pension benefits in some Member States. But the proposal announced by the EC would mean avoiding major losses, and in many cases allowing benefits to transfer with the worker across sectors and countries in the EU.

The Directive aimed to help the growing numbers of EU workers who are switching jobs, and was designed to support the Commission's 'Jobs and Growth' strategy by making it easier for workers to move jobs and countries. Vladim?r ?pidla, European Commissioner for Employment, Social Affairs and Equal Opportunities, explained that the adoption of the proposal would come shortly before the beginning of the 2006 European Year of Workers' Mobility.


"If we expect workers to be mobile and flexible we cannot punish them if they change jobs. Pension rights must be fully transferable. This directive has been long overdue.?


The proposal was designed to reduce the obstacles to mobility within and between Member States caused by supplementary pension schemes provisions. These obstacles relate to: the conditions of acquisition of pension rights (such as different qualifying periods before which workers acquire rights), the conditions of preservation of dormant pension rights (such as pension rights losing value over time) and the transferability of acquired rights. The proposal also seeks to improve the information given to workers on how mobility may affect supplementary pension rights. The proposed legislation has not however had an easy ride. After the European Parliament did considerable damage to the main planks of the Directive in 2007, the European Commission announced in October, 2007, that it had adopted an amended proposal taking on the majority of the European Parliament's amendments. It focuses on the setting of minimum requirements for better access to pension rights, clearer rights of preservation so mobile workers' pensions are treated fairly, and improved access to useful and timely information. Its aim is now to ensure that workers are not penalised because of mobility rather than to enforce transferability, the original goal of the legislation.

Commenting on the proposal Vladim?r ?pidla, EU Commissioner for Employment, Social Affairs and Equal Opportunities explained that: "The amended text highlights the determination of the Parliament, the Council and the Commission to break down the barriers to workers' mobility in Europe." Saying that he was disappointed by the EP's attitude, Mr ?pidla nevertheless acknowledged the progress made, underlining that "achieving the right balance between reducing obstacles to mobility, while maintaining a stable and sustainable environment for the development of supplementary pension provision is one of Europe's greatest challenges."


He went on to add that: "Enabling workers to move freely around the EU and national labour markets without losing important occupational pension benefits is a clear example of ?flexicurity? in action. The urgency of improving workers' rights is why I was ready to accept a compromise on the issue of the transfer of supplementary rights, as well as the exclusion from the Directive of pension schemes that are already closed to new members. It is important that we take this significant step now, and not risk further delay by trying to achieve all our objectives at once."


Provisions relating to transfers are therefore not present in the proposal. The Commission recognises the view of many that, at this time, measures for the transfer of supplementary rights are a step too far. But that was the whole point of the original Directive, surely?


The title of the proposal was amended to 'Proposal for a directive on the minimum requirements for enhancing worker mobility by improving the acquisition and preservation of supplementary pension rights '. As of mid-2010, the Pensions Portability Directive seems to be bogged down in the Council, with Germany causing particular difficulties. Another EU Directive, 2003/41/EC, on the activities and supervision of Institutions for Occupational Retirement Provision, known colloquially as IORP, which attempts to create a Europe-wide market for pensions provision, is a framework directive, and fairly toothless at that - it has been left to individual countries to implement regulations under the Directive, and they have not done much. For the time being, therefore, hopes for a Europe-wide pensions market probably therefore rest with the European Court of Justice, which ruled in early 2007 that Denmark was in breach of European law on freedom of movement of workers and capital by not granting tax-deductions on contributions to pension contracts with foreign insurers. Swedish Finance Minister Anders Borg, whose country has a similar case pending with the ECJ, had commented at a summit in Brussels that the government would analyse the verdict and its possible implications for Sweden.


These are just two of a series of cases brought against national governments by the European Commission in recent years, which issued a communication seven years ago stating that it would sue member states that did not allow 'reasonable' tax treatment of mobile employees' income. While the Commission's work on taxation has certainly had beneficial results, it doesn't help with fragmentation, and does not have the force of law as yet. There is also room for interpretation regarding the definition of 'reasonable treatment' at the moment.

May I let the forum know that Expat Financial Advice Spain has a new blog at http://www.expatfinancialadvicespain.com/blog

In the UK I know pension transfers are highly regulated, and you need to have specific Pension Transfer qualifications (G60, AF3 etc. etc.), on top of the standard Financial Advisor Qualifications.

What concerns me (present company excluded), is there seem to be offshore companies with little or no training/qualifications in Pension Transfer, that are recommending QROPS left, right, and centre.

Does anyone have any views on this ?

I would certainly agree with EUreporter on this. There are far too many firms out there with so called Financial Advisers, who are totally unqualified.

A QROPS transfer needs to be undertaken with great care. We as a company specialise in QROPS transfers. All advice is given by UK CII G60 qualified advisers. And for you who have already come across the so called financial adviser who is in fact an unqualified salesman, who once he has his foot in the door will not leave until you sign. The good news is we can undertake the advice and paperwork via internet and telephone, so this can be done at your own pace, without any pressure. This also means that our costs are less. We pass this on to our clients, offering the lowest costs possible. And I do mean clients. As once we take you on we are committed to look after you.

If you would like an honest and objective assessment of your position.

Contact us: www.pension-transfers-qrops.com

And for you out there who already have an offshore Portfolio check this out, it is the secret to your financial security:

www.personal-portfolio-management.com

An intention has been announced by George Osborne, Chancellor of the Coalition Government to change the rules and tax regulations regarding pensions in Britain. It is advisable for people with a UK pension, and particularly those approaching retirement, to seek advice sooner rather than later as this may result in tax savings.

Johnexpat makes some good points. Regulated, qualified and experienced advisers are the best ones to deal with. A professional and polite approach should also not be too much to ask. If you have these characteristics in place it is often helpful to be able to look your adviser in the eye (so clients tell me!). You also know where the person is based which you may not know in other circumstances. The company may be a perfectly reputable company and do a good job but if they are based in Panam? for example, it is a bit more difficult to pop in to see them.

Specialising in QROPS and Portfolio Management, the one thing I know clients want, are QROPS transfers at a low cost. On the other side of the coin, talking to many QROPS providers this can only be undertaken by economies of scale, some of the smaller ones are already struggling to turn a profit. There are just too many QROPS providers out there. This will inevitably lead to a great many QROPS providers being swallowed up by the larger ones. As an IFA you need to know what is happening in this market, to enable to look after your clients interest.

As a company we have embraced the above, using it to the benefit of clients. And as a result we already offer clients QROPS transfers at a 50% lower charging structure than they would have using their local IFA. But it is horses for courses.

However we are already taking on the management of many QROPS transfers that were undertaken by other IFAs. And also undertake a growing number of QROPS transfers on behalf of other IFAs. Using economies of scale, we are passing the savings on to our clients, and the clients of other IFAs using our service. And look forward to taking on many more clients.

You can contact us at:

http://www.pension-transfers-qrops.com



http://www.prlog.org/11010512-oiia-leads-the-way-to-reduce-costs-on-qrops-pension-transfers.html

Interesting development. It has been announced that the BT Pension Scheme deficit has fallen 2.7 Billion GBP overnight!!! This is being hailed as a great success by some elements of the Press but it is not.

The UK Government has changed the basis for indexation on final salary pension schemes from Retail Price Index to Consumer Price Index. Yawn, Yawn, very boring most people think. Yet you SHOULD take interest if you have, or have had, a final salary pension in the UK.

The BT pension deficit fell by 36% overnight because of the change. The fall was not because of a great surge in the value of the assets in the fund. It fell because this change has reduced the future pensions of the scheme members by 36%. It is the members, most of who will believe such a change without their consent is illegal, that have lost out.

Please check to see if you have a final salary pension and seek advice where appropriate.

Back to the subject of QROPS transfers.

Be warned do not undertake your transfer without a TVA.

OIIA undertake a free TVA (Transfer value analysis) for every QROPS pension transfer enquiry they receive. Other IFAs charge up to ?500 for this service. This is undertaken by a CII G60 qualified adviser.

Most people are looking for a QROPS transfer with a low price tag. A low cost solution may be the difference between undertaking a QROPS transfer or not. But how do you know whatever the cost involved whether a transfer is financially beneficial. The answer is a TVA (Transfer value analysis). It is like having the AA inspect a car you are about to purchase.


FSA regulations on Final Salary pension transfers make it compulsory for an IFA to undertake a TVA (Transfer value analysis) as part of the pension transfer advice process. A TVA clearly shows in financial terms whether or not a transfer is beneficial.


Without this calculation it is impossible to make any comparison. The calculation can be very complicated, and must only be completed by a suitably qualified adviser. Hence the CII G60 or equivalent qualification. To sit the G60 qualification one has to hold a Certificate in Financial planning. So you know that if your advisor is CII G60 qualified he will have a minimum of five years experience as a financial planner. Proceed with care if your adviser does not, or cannot provide you with a TVA. As this may also signal that the firm you are dealing with employs totally unqualified people. Who you are about to entrust with your hard earned life savings.


OIIA are happy to undertake a TVA (Transfer value analysis) prepared by a CII G60 qualified adviser free of charge. This will clearly demonstrate whether a QROPS transfer is financially beneficial to you. This combined with discounted fees and cash rebate, ensure that you get the right solution at the lowest cost possible.

For further details contact: info@pension-transfers-qrops.com

or visit their website: http://www.pension-transfers-qrops.com/index.html

I spent a lot of time looking at IFAs to do my pension transfer. Well over a year spent on it. And I must say what a nightmare it was. Some IFAs told me I could take 100% cash out legaly. So I spent time on this half say you can half say you carnt. So I made my own decision on this and decided not to take a chanse of being taxed 55% for taking all the cash out, especialy when the IFA wanted to charge me 8% as his fee.

I then went down the route of paying for advice. A fixed fee of ?350. That go me an hours consultation with what I can only call a young lad who seemed to know the QROPS provider and investment structure before he came in the door. He sent me a report a few days later. But when I saw the fees involved I thought this is not for me as my pot is only ?55,000.

However I did do my transfer using the IFA on this forum OIIA. After taking information off me and a copy of my Pension statement. They sent me a TVA. I had never heard of it. It clearly showed the benefits of my existing pension at age 65, compared to a QROPS at age 65. They gave me full details of the costs involved including their charges, which in total was a lot less than any of the other options I had been given. I was surprised with the company they used as it was a well known top UK company. And all the admin was taken care of by them. In short it went like clockwork.

My QROPS has been up and running for a few months now so it is early days but already I an in profit. So it proves that it can be done. Many thanks to John and his team.

Hi Brian,
did you do your QROPS transfer after seeing OIIA mentioned on this post?

I did my QROPS transfer with them nearly two years ago. Saved a small fortune compared to what others had quoted.

I would be interested to compare notes as to what investments you now hold in your QROPS.

James..........

Hi,

no I did not see them here I found them through an article. Not sure but it was about regulating offshore IFAs if they do QROPS transfers. I checked them out. Found they have been around since tail end of 90s. Realy nice people to deal with. They did not try to sell a QROPS transfer to me. Had my pension statement off me then did some calculations and sent me a report. The report showed that by age 65 the QROPS transfer would knok the socks off what I would get from my UK pension.

About my investments I am not sure what I am in. But to be honest I do not realy care all I know is that the total value is going up nicely thank you very much. As you will know. OIIA are also a Portfolio Management company. But as my transfer value was only ?55,000 they offered portfolio management for free. So it is being well looked after. The last valuatiion I had off them it was valued at around ?64,000.

Prior to the QROPS transfer the value had gone down year after year for about three years. With still ten years or so to retirement if they keep this up it will be happy days.....................

A Qrops transfer can have many benefits but it shows again that you should not walk into it blindly ! There are many scenarios and a Qrops suitable for one is not always the right one for another.

This will be of interest to anyone thinking of transferring their UK pension to a QROPS. I have just had a statement in from OIIA who did my transfer and also are Portfolio Managers of it.

It is now worth nearly ?70,000. They are just the best.

I have spoken to friends about this, and compared to their pensions in the UK. Mine is jet propelled.
Some of my friends have already contacted OIIA to move their UK pensions to a QROPS.

If you are looking at transferring your UK pension. Contact OIIA and try to speak to John. He is like the encyclopaedia of QROPS.

OIIA once again thank you.

Just a quick note to let readers know that the UK HMRC have written to Isle of Man QROPS providers indicating that the new IoM QROPS is to be approved. There are several reasons why this could be favourable to expats in Spain. For more details about how this may relate to your situation please contact us at barry.davys@spectrum-ifa.com

Very good news!

Just to add a bit to what Barry has touched on. The IOM reviewed its QROPS legislation last year. As part of the review. The legislation now commonly referred to as 50c was created. Prior to this non resident members of IOM QROPS were subject to tax at a rate of 20%. It also opened the way for a new interpretation of the retirement lump sum calculation. This in some cases can mean a lump sum of 80% of the fund value. Making new IOM QROPS the highest lump sum paying QROPS.

The calculation is the fund value less 70% of the transfer value, as opposed to 25% of the fund value in most jurisdictions. (IOM is 30%)

This once again shows that when HMRC make the rules, they always seem to be left open to interpretation rather than set in stone.
This is great news. Do however note that an IOM 50c QROPS is not for everyone. In the main it will only benefit people many years away from retirement, as the differential has to be built up by increasing the fund value. Also note that 50c only applies to new QROPS trusts not ones already in existence.

For more information on this, or general advice on QROPS contact me via our website:

http://www.pension-transfers-qrops.com

Another word of caution regarding QROPS. Whilst they are a really effective piece of planning in some cases, they are also occasions when they are not. We have just advised a client NOT to proceed with a QROPS as he wants to take his pension but has a GUARANTEED annuity rate FOR LIFE on his UK pension of 10.3% per annum. I will not go into the full client circumstances but the best option is for this client to take the guarantee.

As always, QROPS needs a complete check of your circumtances and existing pensions, individual assessment and considered advice.

Totally true Barry Davies a Qrops can be fantastic for some but is not suitable for everyone, it is paramount to seek advice from an expert!

I also agree with Barry. Only take advice from a suitably qualified IFA.

What makes an IFA stand out as suitably qualified?

Answer the adviser must have the advanced qualification in pension transfers G60. And will undertake a full TVA before giving advice on a transfer.

Not many can do this, in fact it is a handful.

I did mine with these guys:


http://www.pension-transfers-qrops.com/index.html

Here is another update on QROPS that you should be aware of when considering a QROPS transfer.

HMRC have included in the draft Finance Act 2012 changes to the QROPS rules. These are only proposals at this point, however, there is a fair chance that these changes will be enacted. This is because the changes are being brought in to stop the abuse of the QROPS rules. In particular, HMRC wish to stop the taking of the entire pension pot as cash.

At present, there is a 5 year reporting requirement from the trustees of the QROPS to the HMRC. One of the main proposed changes is to make the reporting period 10 years. Whilst the HMRC have a right to audit a scheme at any time, with the 5 year rule there is an opportunity for potential evasion. Moving to a 10 year rule will reduce this opportunity.

We are working through the other proposed changes and we are carrying out a full impact assessment.

Our view remains clear. If you are considering a QROPS transfer you must get qualified advice regarding the transfer, QROPS are still a valid form of planning, you must use the QROPS as a pension not as a means of getting your hands on cash and you must ensure that you get ongoing advice.

Following this advice will keep you on track for a happier retirement.

The situation in the eurozone is quite rightly causing some concern and there is a GREAT deal of speculation about the future size and shape of Europe. In turn this is having an impact upon investments, including those held in QROPS.

Portfolio planning for pensions breaks down into three parts:

1/ Portfolio for when you are drawing income
2/ Portfolio for when you have capital in the pension which you wish to make grow
3/ Portfolio for regular contributions to build your portfolio

The approach in these three situations is very different. As an example, in situation 1, you may need to include investments with high yields, high dividends etc and you should position yourself for future income growth to protect yourself against inflation. Currency matching to your income requirement is something else to be considered.

In the current environment, where the outlook is less than clear, in situation 2, you may wish to consider funds with protection, very cautious funds and even money market accounts. This is because, having built up a fund within your pension, you want to ensure that it does not drop substantially in value.

Situation 3 is different. If you are making regular contributions you can take advantage of market instability. Your monthly contributions will buy investments at a lower price and you may profit from this approach in the longer term. This approach even has a name, euro (or pound) cost averaging. You can afford to be a little more speculative with your regular contributions to try to make your pension bigger.

Good luck with your pension planning.

I am glad that Barry has brought this up. The proposed changes to the QROPS rules as per normal are not going to stop the abuse, of 100% commutation to cash. It will only change the focus of the practice, and inconvenience genuine transferees, in the process. The potential QROPS market has only been scratched so far. So aiming advertising at clients who are outside 10 years rather than 5 years will still provide a substantial income to the unscrupulous purveyors of this practice.

If it were made compulsory for a QROPS transfer to be facilitated by only G60 or AF3 qualified advisors, the practice would end overnight.

A G60 or AF3 advisor is the only advisor who has formally been trained to undertake a UK pension transfer, and has to be a fully qualified adviser to undertake the G60 or AF3 exam. The G60 or AF3 exam is recognised as being one of the most difficult financial services examinations to pass, and as a result there are very few qualified at this level. However there are some working in the QROPS market.

In contrast the majority of so called advisors undertaking transfers via New Zealand to enable the client to take 100% as cash, have no qualifications what so ever.

This is your future pension we are talking about so take the time and effort to get it right. Make sure your financial adviser is G60 or AF3 qualified, and that you have a Transfer Value Analysis (TVA) undertaken.

For more information on this, or general advice on QROPS contact me via our website:

http://www.waterstone-investment-associates.com/

In addition to my last post google QROPS TVA or QROPS G60

This is a good place to start looking for a qualified IFA to advise you on your QROPS transfer where ever you are in the world.

For more information on this, or general advice on QROPS contact me via our website:

http://www.waterstone-investment-associates.com/

Now having gone through The Overseas Pension Schemes (Miscellaneous Amendments) regulations 2012 in detail.

This looks on face value to stop 100% encashment via New Zealand which is mentioned by name. But we know of a scheme in Latvia who will allow 100% encashment, and I am sure that there are more.

However the clause that a QROPS must be recognised for tax purposes in their country of establishment, may stop jurisdictions like Latvia being used.

What it does do is clarify the situation where a client claims to be an innocent party to a breach of the rules. As from April 2012 they will be asked to sign that they understand that if their transfer gives rise to a liability under section 208 (unauthorised payments charge) that a surcharge may be levied.

For more information on this, or general advice on QROPS contact me via our website:

http://www.waterstone-investment-associates.com/

I cannot help but wonder, if the breaking of the spirit of the law has resulted in the draft legislation for the Finance Act 2012, what will happen if this continues.

The time limits that are included in the current and proposed legislation of 5 and/or 10 years apply to the AUTOMATIC requirement for the QROPS trustee to report to the HMRC. However, HMRC have the right to audit a QROPS transfer at ANY time.

The new legislation for QROPS has now been issued and will be implemented from 6th April 2012. In essence, the legislation has cracked down on trying to "pension" bust a QROPS. The law now is clearer than it has been

10 year automatic reporting requirement from date of TRANSFER

Minimum of 70% of the fund value to be used to provide income. (Note, the HMRC does not allow the taking of 100% of the fund)

The ability to have a 100% spouse?s pension is maintained

A QROPS is still very useful as a pension

If you have moved overseas or are moving overseas and you have a UK pension you should get qualified and regulated advice about QROPS.

Other than the fallout that has been felt in Guernsey. Nothing has really changed other that the 100% cash abuse will stop. The good news is finally the unqualified masquerading as financial advisers will also pack up and go home.

Our advice remains the same only undertake a QROPS transfer after taking G60 qualified advice, and this advice is backed up by a TVA (Transfer value analysis). Without this report you cannot compare the fee structure of the QROPS to that of your UK scheme.

Increasingly QROPS Trustees are asking for a copy of the TVA report before they will accept an application.

For further information on a TVA can be found on our company site:

pm for site , EDITED BY JURDY

Having spoken with many QROPS providers in Guernsey. The island will not be able to offer QROPS transfers to non residents for quite some time. Most people believe this was done by HMRC to stem the flow of pension funds leaving the UK and hurting the UK tax man in lost revenue. Remember Guernsey was the number one QROPS jurisdiction until April this year.

Malta has now taken Guernsey?s crown. With most Guernsey QROPS providers now moving to Malta. However as Malt is in the EU, HMRC will not be so eager to mess with them as Malta has the full force of the EU courts behind them.

Given that Malta has a DTA in place with Spain. Transferring your UK pensions to Malta allows you to have your pension paid to you with no tax deducted. Your UK pension will have tax deducted at source. It is also worth noting the last place to transfer your UK pension to is Spain.

Given Spain?s problems within the Euro zone. It is worth considering the benefits of a QROPS transfer from the currency perspective. A QROPS can hold multicurrency asset and cash accounts. Allowing you to maximise currency exchange rates. You are not committed to either GBP or Euro. You can even hold in USD if it is in your interest.