Have you lived offshore from the UK for more than 5 years?
What if someone told you that if you have lived overseas for more than 5 years, you can actually have access to, and more control over your UK frozen pension? Well, it’s true.
How do UK pensions behave?
Traditionally, UK Pensions have many restrictions. The first and foremost is that they CANNOT be accessed until the age of 55 or 60, which I am sure, many of you still have time to go before that happens. In addition to this, when you do finally reach that age where you can dip into your pension, you can’t have all of it. You are able to take 25% as a tax free cash lump sum. The rest of it you will need to purchase what you would call, an annuity. Depending on the rates at that time, it could be very poor, and whatever you are paid, is subject to tax as earned income.
How can you access your UK pension?
In April 2007, it was announced that British expatriates could move their pension benefits to what is referred to as a Qualifying Recognised Overseas Pension Scheme (QROPS) with the Revenue's approval. The rules of the scheme must be broadly equivalent in terms of treatment, to a UK registered pension scheme and the QROPS trustee must provide Her Majesty’s Revenue & Customs (HMRC) with information on certain “events”.
Difference between a UK pension and QROPS?
The key difference is that a QROPS can be transferred to an onshore pension scheme in a more favorable jurisdiction once the individual has been offshore for 5 years. If structured in this way, transferring pension benefits via a QROPS can have huge benefits.
Why transfer to a QROPS?
The flexibility of moving your pension into a QROPS is much wider than leaving it frozen in a UK pension.
With a QROPS, you have much more investment flexibility than you would with a UK pension, where there is little or in some cases, no flexibility at all. For example, you are able to purchase residential property within a QROPS, and you can even have your pension fund held in Sterling, Euros, or any currency of your choice.
If you believe you do have a frozen pension or pensions in the UK, and you have lived offshore for over 5 years with a view to transfer this to a QROPS, please feel free to contact us with any questions you may have on
enquiries@prosperity-uae.com
CRITICAL ILLNESS COVER
Did you know that almost every person knows of at least 1 person who has suffered from a form of critical illness? FACT. This can be anything from a Heart Attack, some form of cancer, Multiple Sclerosis, Kidney Failure, and a Stroke.
One is 5 people are more likely to develop a critical illness before retirement age than to die.
There are many many people in the UAE who find this type of cover a “waste of money”. Has anyone ever thought of how the bills would be paid if any one of you suffered a form of Critical Illness? Many people haven’t, and are prepared to face the consequences when and IF anything does happen.
Along with the importance of “planning for your child’s education” Prosperity will be talking about how planning your child’s education, and protecting them financially go hand in hand.
Office 712
7th Floor
Fairmont Tower
Sheikh Zayed Road
PO Box 24459
Dubai UAE  |
| Tel: |
+971 4 312 4334 |
| Fax: |
+971 4 312 4335 |
| Email: |
enquiries@prosperity-uae.com |
| Office Hours: |
9am-5pm |
| Contact: |
Neil Grant (Executive Director) |