Qrops

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by: jamiesoadlie
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Word Count: 335
Date: Tue, 1 Mar 2011 Time: 2:16 PM
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If you are getting a QROPS, you might have got your head around the concept of getting your money out of the United Kingdom (and therefore out of the reaches of the UK taxman). However, you may be struggling with the idea of where your money will actually go.

As a QROPS shopper, you can only choose overseas pension schemes that have been approved by HMRC. But before you get worried about lack of choice, you may wish to bear in mind that there are over a thousand QROPS on HMRC's list, and some more schemes that have been approved confidentially.

Going with a scheme that has not been individually approved is not really an option, because penalties may be due to HMRC as this is seen as a form of tax evasion. Accordingly, you can't just pick any old pension scheme in New Zealand, for example, just because you know that New Zealand is capable of hosting QROPS.

The qualifications that HMRC sets for its QROPS criteria involve a scheme being taxed and regulated as a pension in its own jurisdiction. But before you start to wonder what the point of getting one is, bear in mind that these tax and regulatory requirements do not mean that they have to be like UK pension schemes.

In terms of the geographical location of QROPS, they can be in far flung places (like Australia and New Zealand) or very close to home, like Ireland and France.

Given that you do not have to live in the same place as your QROPS, you can choose one wherever you like. The issues to take into account when choosing a QROPS jurisdiction include:

. the tax regime it operates in;
. how early that country permits access to lump sums (and how much);
. whether annuitisation is compulsory; and
. the quality of financial institutions in that country.

Contact Qrops.net for further advice and information

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Find out more about Qrops, contact the global leaders www.qrops.net