QROPS
An STM QROPS continues to be a compelling choice for certain people thinking of retiring abroad
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What is a QROPS?
A QROPS is a pension plan designed for non-UK resident individuals with UK pension assets who are looking to transfer their funds to a location which better suits their circumstances and financial planning objectives.
STM QROPS
A QROPS can accept a UK pension transfer just like any UK registered scheme, although it must meet certain HM Revenue and Customs (HMRC) criteria. The benefits of transferring your fund into a QROPS include increased tax efficiency and investment flexibility.
Who is eligible for a QROPS?
Many clients will be eligible for a QROPS. There isn’t any hard and fast rule regarding the minimum or maximum transfer limits to a QROPS, however the suitability of a transfer is determined by a number of factors. As a general rule, transfers under £40,000 may not be cost effective.
Benefits of a QROPS
Greater tax efficiency
Using a range of international investments, funds within a QROPS can grow with no UK tax deducted (depending on the investment chosen). If the member is a non-UK tax resident, no UK income tax is deducted at source on pension income.
Flexible investment options
In addition to mainstream investments such as unit trusts, portfolio bonds, investment platforms, and discretionary fund managers, a QROPS can also invest in international commercial property and other approved assets.
Fixed pricing
Fixed Pricing: many UK pension schemes, including Stakeholder pensions, have a percentage-based charging structure. A QROPS from STM has fixed all-inclusive annual fees which could offer significant savings as STM costs are not linked to the value of the fund. Please note individual investment manager fees vary.
Maximising benefits to beneficiaries
Generally benefits paid to a beneficiary are not subject to UK tax if the member dies before age 75 and are taxable at the recipient’s marginal rate if the member dies after age 75. However, it is possible for benefits from a QROPS to be paid out with no UK tax, passing on more of the fund to a member’s beneficiaries.
Application of UK taxes
Temporary non-residence rules: No UK income tax if individual is non-UK resident for at least 5 full tax years, irrespective of the amount, or less than 5 years and total withdrawals (from the QROPS and/or UK Registered Pension Scheme) in the non-resident period are below £100,000.
Member payment regime: Protection from UK member payment regime, if individual is non-UK resident. This is defined as non-UK resident for the last 5 or 10 full tax years before payment (depending on date of transfer to QROPS). Furthermore, for transfers from a Registered Pension Scheme to a QROPS after 5 April 2017 the member payment regime can apply for 5 years from date of transfer to the QROPS.
Discover the benefits of a QROPS from STM
Simply fill in the form or contact one of our regional specialists
Anthony Lowes
Business Development Manager
Europe & Israel
E: anthony.lowes@stmgroupplc.com
T: +34 629 680 092
Stuart Denness
Managing Director
Australia
E: stuart.denness@stmgroupplc.com
T: +61 (0)450573371
STM Fidecs Pension
Trustees Limited
PO BOX 575
Montagu Pavilion
8-10 Queensway
Gibraltar, GX11 1AA
T (+350) 200 45877
T (+350) 200 42686
E pensions@stmfidecs.gi
Gibraltar Financial Services Commission licence number: FSC 00845 B. Gibraltar Company registration number 85583
STM Fidecs Life Health
and Pensions Limited
PO BOX 575
Montagu Pavilion
8-10 Queensway
Gibraltar, GX11 1AA
T (+350) 200 45877
T (+350) 200 42686
E pensions@stmfidecs.gi
Gibraltar Financial Services Commission licence number: FSC 00996 B. Gibraltar Company registration number 97110
STM Malta Pension
Services Limited
San Gwakkin Building
Level 1
Triq is-Salib tal-Imriehel
Zone 4 – Central Business District
Birkirkara, CBD4020
T (+356) 213 33210
E info@stmmalta.com
STM Malta Pension Services Limited is registered as a Retirement Scheme Administrator with the Malta Financial Services Authority. It is also authorised to act as trustee or co-trustee to provide fiduciary services in terms of the Trust and Trustees Act. Company Registration number: C51028