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Old Dec 6th 2011, 9:11 pm   #46
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Default Re: QROPS

Quote:
Originally Posted by Peter Crawley View Post
I think careful consideration should be given to where you believe you will be living when you start to draw the pension benefits.

Whilst ensuring your QROPS is good value for money and taking good investment advice is important, all the initial good work could be undone by currency fluctuations and your needing to live on the currency that was affected. ( For many pensioners outside the UK and drawing pensions from UK funds, the weak pound is causing real hardship )

There are a huge number of considerations to think about and, bearing in mind the size of some of the personal pension funds, it has to worth doing your research.

Tax residency, domicility, FX flexibility, charges, investment adivce provider, professional insurance, qualifications , juristiction, local pension rules and, not least, a bit of due diligence on the QROPS trustees.

Note that the HMRC QROPS list is very carefully worded and that schemes on that list are not approved, they are merely recognised. An important distinction.

Good luck with your research.


P
Telegraph Expat has published an article on QROPS today, 6 December: http://www.telegraph.co.uk/finance/p...-maturing.html
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Old Dec 6th 2011, 9:24 pm   #47
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Default Re: QROPS

Out of interest I worked with London & Colonial before moving to Canada. This firm have some quality staff - the Chairman is the author of the standard text on pensions law. The article nicely highlights some of the issues that have been discussed on this forum. Out of interest I'm currently dealing with a UK firm with a view to putting together a Transfer Value Analysis for QROPS - This will be very helpful for Final Salary Scheme Members - another area where great care is required!
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Old Dec 7th 2011, 12:38 am   #48
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Default QROPS in Canada: a warning

1) If you decide to move your pension to a QROPS in Canada, then be aware of how you will be taxed. Your QROPS will be held in an RRSP, whereupon withdrawals are taxed at these rates:

$0 - $5,000 ……………….. 10%

$5,000.01 - $15,000 ……. 20%

$15,000.01 and over ……. 30%:

2) If you do decide to move your pension to Canada, you may want to consider a self-directed QROPS, where the fees are considerably lower than with other schemes. Two Canadian banks offer self-directed schemes:

3) Be very careful NOT to go for a “Locked In” scheme.

Last edited by Mitzyboy; Dec 7th 2011 at 9:59 pm.
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Old Dec 7th 2011, 1:00 am   #49
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Thumbs up Re: QROPS

You are quite correct about the 5 year rule I specilaise in QROPS and if anyone has any questions please let me know?
I am currently in KL but looking to relocate to Goa next year, anyone out there in Goa by any chance?

I am looking to rent an apartment but all I can see are holiday lets, any suggestions welcome?

Thanks and regards,

Bob Simpson
(SNIP)


Quote:
Originally Posted by bakedbean View Post
I read your article which was interesting, though realize that your expertise lies in UK and Canada but..... you don't mention anything about the 5 year non-UK residency rules.

As I understand it, once 5 year non-UK residency is achieved, there is no requirement for a QROPs provider to inform HMRC of any transfers received, or lump sum payments made. So how would that come under scrutiny?

Agree with you regarding the weak Pound. It's a bit of a lottery.

For me personally, I am already retired (early) but haven't taken any UK pension as yet. I have income from tax-free investments here in Asia and I can bring in offshore income tax-free into Malaysia and that is plenty for me to live on currently. The frozen UK pension/QROPs conundrum - thankfully I'm not relying on that - but, all the same, it would be nice to get some dosh out of it at some point in the future. At the moment, I keep kicking the QROPs idea down the road.

It's a pity we don't have a general Pensions/QROPs section on BE. I just keep tagging onto different threads all over the place

Last edited by Mitzyboy; Dec 7th 2011 at 6:50 am.
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Old Dec 7th 2011, 4:54 am   #50
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Default Re: QROPS

The draft Finance Act 2012 legislation that was published yesterday included a number of proposed legislative changes to QROPS.

The five year rule for scheme reporting will change to 10 years;

QROPS must be recognised for tax purposes in their country of establishment;

Individuals will have to acknowledge the tax implications of moving the fund out of the UK.

To make this clear, this is in consultation, and is not yet law, but it seems obvious that HMRC want to crack down on people trying to break the spirit of the rules pertaining to pensions.

As ever, caveat emptor.
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Old Dec 7th 2011, 4:56 am   #51
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Default Re: QROPS

Quote:
Originally Posted by bobsimpson51 View Post
You are quite correct about the 5 year rule I specilaise in QROPS and if anyone has any questions please let me know?
I am currently in KL but looking to relocate to Goa next year, anyone out there in Goa by any chance?

I am looking to rent an apartment but all I can see are holiday lets, any suggestions welcome?

Thanks and regards,

Bob Simpson
Regional Director
M1 Malaysia
Soon to be a 10 year rule, if HMRC have their way.So, people thinking of transferring into QROPS now need to have a good look at the new proposals and the new deadlines.

I wonder if, as QROPS are not approved by HMRC, firms will have to reapply for recognition in light of the new rules, if they come into force. Reason being, the currently have to confirm that they adhere to the rules and new rules might mean new recognition. Who knows?

I think anyone thinking of transferring between now and April next year needs to go into this with their eyes wide open!
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Old Dec 7th 2011, 5:00 am   #52
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Default Re: QROPS

Quote:
Originally Posted by Meow View Post
The draft Finance Act 2012 legislation that was published yesterday included a number of proposed legislative changes to QROPS.

The five year rule for scheme reporting will change to 10 years;

QROPS must be recognised for tax purposes in their country of establishment;

Individuals will have to acknowledge the tax implications of moving the fund out of the UK.

To make this clear, this is in consultation, and is not yet law, but it seems obvious that HMRC want to crack down on people trying to break the spirit of the rules pertaining to pensions.

As ever, caveat emptor.
This link might help people.... http://www.hmrc.gov.uk/tiin/tiin650.pdf
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Old Dec 7th 2011, 6:49 am   #53
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Default Re: QROPS

I'm taking a flyer keeping this thread open. Can I just make it clear that advertising or soliciting for business it not allowed in these forums, and such posts will be removed or clipped without any warning

Thank you for your cooperation
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Old Dec 7th 2011, 9:08 am   #54
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Default Re: QROPS

Quote:
Originally Posted by Mitzyboy View Post
I'm taking a flyer keeping this thread open. Can I just make it clear that advertising or soliciting for business it not allowed in these forums, and such posts will be removed or clipped without any warning

Thank you for your cooperation
I have now found the full "official version" of the proposals from HMRC

http://www.hmrc.gov.uk/budget-update...raft-legis.pdf

Suggest you start at page 9. Hopefully, this will clarify the reasons for the changes as well as the proposals.
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Old Dec 7th 2011, 10:34 am   #55
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Default Re: QROPS

Quote:
Originally Posted by GOZOPAZ View Post
Telegraph Expat has published an article on QROPS today, 6 December: http://www.telegraph.co.uk/finance/p...-maturing.html
The new proposals make a lot of the discussions about QROPS and cashing in pensions redundant.

For ordinary QROPS holders there is the Devil in the detail. Scheme managers must tax non-residents in the same way as the residents where the QROPS is based. Before, income could be taken without any tax deduction and simply declared on expats' local tax return. Now , expats will have a withholding tax in the QROPS location and will be taxed twice if they don't have a double taxation treaty agreement or don't offset this on their returns.
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Old Dec 7th 2011, 10:45 am   #56
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Default Re: QROPS

Quote:
Originally Posted by Mitzyboy View Post
I'm taking a flyer keeping this thread open. Can I just make it clear that advertising or soliciting for business it not allowed in these forums, and such posts will be removed or clipped without any warning

Thank you for your cooperation
Mitzy - a brave decision bearing in mind what has gone on before in similar threads - but - this time I think we are getting some sensible postings from people who are citing references.

I will have to make a number of decisions in the coming 12months and this is something I have considered - but know enough to refuse any talk about getting all my money back in a brown envelope.

rgds
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Old Dec 7th 2011, 5:23 pm   #57
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Default Re: QROPS

Quote:
Originally Posted by Mitzyboy View Post
I'm taking a flyer keeping this thread open. Can I just make it clear that advertising or soliciting for business it not allowed in these forums, and such posts will be removed or clipped without any warning

Thank you for your cooperation
Do please keep this thread open. There are some really good postings.
I will be adding more of my own here, as I'm in the middle of some research which I hope will bear fruit. It may be a couple of weeks before I can report more in depth.
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Old Dec 7th 2011, 9:44 pm   #58
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Default Self-directed QROPS in Canada

Anyone interested in self-directed QROPS in Canada can e-mail

(SNIP - Interested parties can check out HMRC's list, I;m sure)

For the record, I got to hear of these self-directed accounts from HMRC’s list of recognized schemes. I didn’t notice any other self-directed schemes there (a month ago).

Unfortunately, the Canadian tax position on RRSPs (and QROPS) is as I described it earlier. This is what Revenue Canada’s website says:


Tax rates on withdrawals

When you withdraw funds from an RRSP, your financial institution withholds the tax. The rates depend on your residency and the amount you withdraw. For residents of Canada, the rates are:

o 10% (5% in Quebec) on amounts up to $5,000;
o 20% (10% in Quebec) on amounts over $5,000 up to including $15,000; and
o 30% (15% in Quebec) on amounts over $15,000.

For funds held in the province of Quebec there will also be provincial tax withheld. For more information on Quebec withholding, contact your financial institution or Revenu Québec.

For non-residents of Canada, withholding is 25% unless reduced by a treaty. See IC76-12R, Applicable rate of part XIII tax on amounts paid or credited to persons in countries with which Canada has a tax convention.


(SNIP) the link to the relevant page on Revenue Canada’s website http://www.cra-arc.gc.ca/tx/ndvdls/t...s/rts-eng.html), where you will find the above information.

Last edited by Mitzyboy; Dec 7th 2011 at 9:58 pm. Reason: As I said, we dont want links to individual providers posted here thanks
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Old Dec 8th 2011, 1:24 am   #59
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Default Re: QROPS

I may be turning into a very cynical person, but I just feel that the UK gov wants to grab every single penny you've earned. What's with these new rules? So they're trying to stop people doing QROPs?

And I now hear that Nick Clegg is putting about that pensions should now be means tested. So if I've been "sensible" and saved into a private pension, presumably he'd like it if I didn't get my rightful UK state pension. Left wing little ****
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Old Dec 8th 2011, 1:27 am   #60
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Default Re: QROPS

Quote:
Originally Posted by bobsimpson51 View Post
You are quite correct about the 5 year rule I specilaise in QROPS and if anyone has any questions please let me know?
I am currently in KL but looking to relocate to Goa next year, anyone out there in Goa by any chance?

I am looking to rent an apartment but all I can see are holiday lets, any suggestions welcome?

Thanks and regards,

Bob Simpson
(SNIP)
Bob, I already replied to you in Malaysia forum (and you acknowledged) that posting in the Goa forum might be the most sensible forum to post in, if you are genuinely looking for info on Goa.

But maybe you're just trying to promote your business uh? By the way, as far as I can see, there are no QROPs providers in Malaysia.
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