Would you like to make more of your Pension Fund?
If, like many expats in France, your personal pension fund is one of your largest assets then you’re sure to want to give it the potential to generate the best retirement income possible.
We talk to Jennie Poate at Beacon Global Wealth about the QROPS – Qualifying Recognised Overseas Pension Scheme and how it may benefit expats in France.
QROPS – What is it?
QROPS is an overseas pension scheme that meets certain requirements set by His Majesty’s Revenue and Customs (HMRC). A QROPS must have a beneficial owner and trustees, and it can receive transfers of UK Pension Benefits.
The jargon explained:
In a nutshell what it means is that you can transfer your UK pension out of the UK and into an overseas pot which may be more tax efficient if you choose the right product. Since the UK Government introduced a new 25% tax on pension transfers to QROPS – you need to make sure you pick the right QROPS product.
In December 2016 the UK government removed all French pension schemes from its list of approved QROPS. For expats in France, though your choice of countries for QROPS has narrowed if you want to avoid paying 25% tax (and who wouldn’t want that?) if you transfer to a QROPS within another European Economic Area (EEA) of jurisdiction for instance Malta or Gibraltar, you will still gain tax-efficient benefits. If you’re an expat in Monaco, a non-EEA country, by transferring to a QROPS within Monaco, you won’t be subject to the 25% tax.
What are the benefits of QROPS for expats in France?
Transferring your UK pension to a QROPS can provide significant tax advantages for instance on income and gains which no longer apply. Funds in your QROPS aren’t included in your Lifetime Pension Allowance (LTA) so growth in the fund is except from LTA tax penalties. QROPS can be used to manage estate planning as funds may be distributed according to your wishes, where as a UK Pension may only be inherited by a spouse.
How do you choose the right QROPS
Get expert advice. Before you decide to transfer your UK Pension into a QROPS, we’ll meet with you free of charge and provide you with excellent information so that you can make an informed decision. There are lots of factors we consider. We aim to save you tax and maximise your income and protect your assets. A QROPS transfer may not be right for you and if that’s the case, we’ll tell you that and we’ll see if there’s something else that’s more suitable – or not.
Jennie Poate is a qualified advisor with Beacon Global Wealth Management: beaconglobalwealth.com
This communication is for informational purposes only based on our understanding of current legislation and practices which is subject to change and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice form a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Beacon Global Wealth Management are members of Nexus Global (IFA Network). Nexus Global EU is a division of Blacktower Financial Management (Cyprus) Limited (BFMCL) and Blacktower Insurance Agents & Advisors Ltd (BIAAL). Beacon Global Wealth Management is an Appointed Representative of BFMCL which is licensed and regulated by the Cyprus Securities & Exchange Commission (CySEC) – Licence No. 386/20. Beacon Global Wealth Management is an Appointed Representative of BIAAL which is licensed and regulated by the Insurance Companies Control Service (ICCS) – Licence No. 5101