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Re: Which QROPS - with who?
Originally Posted by Domino
(Post 9611767)
I was just wondering why we havent heard anything from the OP in this
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Re: Which QROPS - with who?
I have very recently moved my pension fund into a QROPS scheme. After much researching I settled on using Blevin Franks to handle the process.
Regarding taking tax free cash this is what I was told:- "You could take 25% of the pension fund in cash, unfortunately, this is liable to tax in Spain which will be levied on the gain element, i.e. premiums paid into your pension fund divided by the value of the pension fund at the time of withdrawal will give you the percentage split of capital leaving the remainder as income." An illustrative calculation followed. The 25% can be taken at any time up until the fund is crystallized, i.e you start to draw income from it, not only at the point of transfer. I believe that you cannot take the remaining balance of the fund as cash IF the QROPS providor is fully compliant with the UK QROPS rules. |
Re: Which QROPS - with who?
Originally Posted by Fred James
(Post 9612000)
Probably because I removed the link he posted to a QROPS site!
there was enough of this on another part of this forum that didnt go anywhere just arguing about I did and You cant etc etc. and the funny thing is I am looking at the pros and cons of QROPS for myself but will make my own decisions without taking advice from a forum contributor. kr |
Re: Which QROPS - with who?
advertising.. I think this thead defies that statement.
It is so confusing. so many website and people are saying different things. I just wanna make sure it's legit and that I can draw as much of my pension as possible. |
Re: Which QROPS - with who?
FWIW Blevins Franks as a company are UK FSA regulated and so is the individual IFA who we worked with. Their registration numbers check out on the FSA website. This is one of the main reasons that I chose them.
So I'm inclined to believe that they are telling me the truth as it currently stands.. Other than being a customer I have no connection with the company. |
Re: Which QROPS - with who?
Originally Posted by bob_day
(Post 9615327)
FWIW Blevins Franks as a company are UK FSA regulated and so is the individual IFA who we worked with. Their registration numbers check out on the FSA website. This is one of the main reasons that I chose them.
So I'm inclined to believe that they are telling me the truth as it currently stands.. Other than being a customer I have no connection with the company. I was told that if I used New Zealand, then I would be able to take 100% of the funds once I met the criteria (5 tax years outside of UK etc.) |
Re: Which QROPS - with who?
Originally Posted by snikpoh
(Post 9615413)
Interestingly though, they told me something different to you.
I was told that if I used New Zealand, then I would be able to take 100% of the funds once I met the criteria (5 tax years outside of UK etc.) |
Re: Which QROPS - with who?
Originally Posted by Domino
(Post 9612124)
well I for one will not be feeding him
there was enough of this on another part of this forum that didnt go anywhere just arguing about I did and You cant etc etc. and the funny thing is I am looking at the pros and cons of QROPS for myself but will make my own decisions without taking advice from a forum contributor. kr Thanks to everyone who offered advice.. no thanks to the paranoid |
Re: Which QROPS - with who?
Originally Posted by john4spain
(Post 9615551)
Isn't that the point of forums.. getting advice from people..
Thanks to everyone who offered advice.. no thanks to the paranoid just remember that advice off forums such as this are as useful as asking down the pub caveat emptor |
Re: Which QROPS - with who?
Yeah.. sure.. thanks Domino
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Re: Which QROPS - with who?
Leaving completely aside the rights or wrongs of 100% encashment one thing which has been entirely ignored or forgotten is the question of tax in Spain.
Clearly such a sum will fall under the heading of world wide income and would, almost by definition, fall into the highest 43% bracket. That would be guaranteed take the smile off most faces so I'd be interested in hearing how people plan to avoid, or have avoided, this ? In the other thread I linked to the contributor concerned openly boasted that he had banked a cheque for €80,000 in the Irish Republic and whilst I'm not familiar with the tax system there I think it unlikely that such a windfall would escape the attention of the Irish taxman. If nothing else under EU money laundering directive deposits in excess of €15000 are reportable. Also someone mentioned that Blevins Franks are regulated by the UK's FSA and I'd be equally interested to know how that is relevant to advice given in Spain, or indeed anywhere outside the UK ? |
Re: Which QROPS - with who?
Originally Posted by Im_and_Er
(Post 9617545)
Leaving completely aside the rights or wrongs of 100% encashment one thing which has been entirely ignored or forgotten is the question of tax in Spain.
Clearly such a sum will fall under the heading of world wide income and would, almost by definition, fall into the highest 43% bracket. That would be guaranteed take the smile off most faces so I'd be interested in hearing how people plan to avoid, or have avoided, this ? In the other thread I linked to the contributor concerned openly boasted that he had banked a cheque for €80,000 in the Irish Republic and whilst I'm not familiar with the tax system there I think it unlikely that such a windfall would escape the attention of the Irish taxman. If nothing else under EU money laundering directive deposits in excess of €15000 are reportable. Also someone mentioned that Blevins Franks are regulated by the UK's FSA and I'd be equally interested to know how that is relevant to advice given in Spain, or indeed anywhere outside the UK ? When I have moved sums of money from UK to Spain, I have told the bank (correctly) that this money is from the sale of my business - they are happy with this. When preparing my tax return, my gestor doesn't seem to care where the money has come from. If the money is taxable, then how should it be declared? by-the-way, rightly or wrongly, my bank tells me that the figure of €15000 was raised to €30000 last year. |
Re: Which QROPS - with who?
Originally Posted by snikpoh
(Post 9617558)
It really depends what you do with that money. It's clearly not income and wealth tax is now 0%. If it is invested, say, in a Spanish Portfolio Bond, then it is only the gain and any withdrawals from that gain which is taxable.
When I have moved sums of money from UK to Spain, I have told the bank (correctly) that this money is from the sale of my business - they are happy with this. When preparing my tax return, my gestor doesn't seem to care where the money has come from. If the money is taxable, then how should it be declared? by-the-way, rightly or wrongly, my bank tells me that the figure of €15000 was raised to €30000 last year. |
Re: Which QROPS - with who?
Originally Posted by snikpoh
(Post 9617558)
It really depends what you do with that money. It's clearly not income and wealth tax is now 0%.
There is a calculation which determines how much of the lump some is income from the investment of the funds and how much is the return of capital invested. This will depend on how long the fund was running and other factors. The amount that is deemed to be the income element is taxable as savings income and declared on your annual RENTA declaration. The savings tax rates are 19% on the first €6000 and 21% thereafter. I don't know if there are special terms in Spain for money from a QROPS scheme but as that is a UK tax issue I doubt it - Blevins Franks should know the answer to that. |
Re: Which QROPS - with who?
Originally Posted by snikpoh
(Post 9617558)
It really depends what you do with that money. It's clearly not income and wealth tax is now 0%. If it is invested, say, in a Spanish Portfolio Bond, then it is only the gain and any withdrawals from that gain which is taxable.
I don't understand what you mean by 'depends on what you do with the money' and what do you regard it as if not income. Even if you gave it away or blew it on wild women, gambling, flash cars (and wasted the rest :D) it was still money you received forming part of your world wide income and therefore declareable and potentially liable to taxation, I don't see what else you could call it. The fact that it may have been paid out tax free in NZ, or wherever, does not discount it from taxation in your country of residence. When I have moved sums of money from UK to Spain, I have told the bank (correctly) that this money is from the sale of my business - they are happy with this. When preparing my tax return, my gestor doesn't seem to care where the money has come from. If the money is taxable, then how should it be declared? Under the EU money laundering directive banks have a duty of due diligence and must satisfy themselves both to the identity of their clients and the source or sources of their deposits. How they actually discharge that obligation is largely at their discretion however they have to be able to defend their actions if challenged to do so. I don't know the details of course but if you sold a business in UK whilst you were Spanish resident then that should have been reported on your next tax return and taxed according to Spanish tax rules and with due regard to the dual tax treaty. If on the other hand you just banked the money in UK and said nothing but are now drip feeding it over to Spain in modest amounts then it should all go down on your tax return and you would pay tax, or not, depending on your overall income and circumstances. Unless a gestor suspects money is from dubious or illegal source he has no real reason to care where it has come from. by-the-way, rightly or wrongly, my bank tells me that the figure of €15000 was raised to €30000 last year. Wrongly I think. the EU Third Directive on Money Laundering specifies sums in excess of €15000 and member states are free to impose lower limits but not higher. Here is the Spanish implementation. http://www.boe.es/boe/dias/2010/04/2...-2010-6737.pdf |
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