A GUIDE TO

QUALIFIEDRECOGNISEDOVERSEAS PENSIONSCHEMES (Q)ROPS

Brought to you byINTERNATIONALPension Transfer Consultants Ltd.

A Guide to (Q)ROPS: Recognised Overseas Pension Schemes by International Pension Transfer Consultants Limited

IntroductionOur aim with this guide is to provide you with the essential ‘need to knows’ of (Q)ROPS. If you are a UK expatriate or an International investor read on to see how transferring your UK pension scheme to another jurisdiction may be of considerable benefit to you.

International Pension Transfer Consultants Limited are an Irish based pension consultancy specialising in areas of pension planning for the international investor. We are experienced in the delivery of innovative and bespoke pension solutions to international expatriates. We also offer customised retirement planning for UK expatriates through the establishment of Qualified Recognised Overseas Pension Schemes ((Q)ROPS) both in Ireland and Malta.

Qualified Recognised Overseas Pensions Schemes were first introduced in the Pensions Act 2006 as part of “pension’s simplification” as a set of rules to support the mobility of people by allowing UK private pension holders to move their pension plans to overseas arrangements. Whilst it has always been possible to apply to the UK authorities to transfer pension benefits, the introduction of the (Q)ROPS regime was designed to streamline this process. Transfers to (Q)ROPS would be deemed “recognised” and not subject to any “unauthorised payment charges” as detailed later

What can be transferred?Most UK pensions schemes can be transferred to a (Q)ROPS including “protected rights” and those schemes in “drawdown” The exceptions are typically state pensions, annuities and final salary schemes, once in payment.

Benefit Options

Transferring your UK pension scheme offers you more flexible options for your retirement. From as early as age 55 you can obtain these benefits through tax, inheritance and income benefits including;

• Access to up to 25% of your pension fund as a tax free* lump sum payment. Pension Commencement Lump Sum is limited to 25% and the residual fund is to be used to provide an income for life.

• Retirement from age 55. Pension rule 1 in section 165 Finance Act 2004 provides that no payment of pension may be made before the day on which the member reaches pension age (55), unless the ill health condition was met before the member became entitled to a pension under the scheme or on death

• Flexible investment choices and access to a wide range of global fund managers.

• No requirement to purchase annuities on retirement, meaning you aren’t restricted to a set income

• Flexible access to your retirement income through Pension Freedoms or programmed withdrawal facilities

• Tax free growth on your investments

• Control and easier planning of your estate meaning that you can pass your benefits on to your family.

• You can plan your retirement with more ease and reduce your annual management charges through the consolidation of multiple pensions into one scheme

There are many benefits to transfering your UK Pension to a (Q)ROPS Scheme.

Pension Freedoms

As of 5th April 2015 HMRC changed the rules governing pension withdrawals, following on from the introduction of “pension freedoms” by George Osborne. These changes now allow members to take their 25% PCLS (pension commencement lump sum) Tax free in the UK and the residual pot 75% in a single or regular payment subject to the marginal rate of income tax.

For UK nationals now living in Ireland and drawing down a PCLS from either an Irish (Q)ROPS or a Malta (Q)ROPS the taxation treatment is as follows:

1 The first €200,000 is free of tax2 The balance up to €500,000 is taxable at 20%3 Above €500,000 marginal tax rates apply

Who should consider a transfer to a (Q)ROPS?The legislation that governs (Q)ROPS schemes is not restricted to UK nationals. If you are a non-UK national and have built up pension benefits whilst working in the UK you may be eligible to apply for a transfer to a (Q)ROPS. If you meet the following requirements you should consider transferring your UK based pension:

• Any UK expatriate between the ages of 18 and 75• Any UK non-expatriate with an intention of becoming an expatriate within 12 months• Anyone who has officially worked in the UK for any length of time

(Q)ROPS are potentially suitable for those who have already emigrated from the UK on a permanent basis, UK non-domiciles who will return home, and those intending to migrate from the UK on a preferential basis at some time in the future. HMRC have also confirmed that (Q)ROPS are suitable for UK domiciled and resident persons who are not intending to emigrate.

In the 8th of April 2017 budget, HMRC announced the introduction of the “overseas transfer charge” (OTC) which came into effect on the 9th of April 2017.

2017 UK PENSION REFORMS

The OTC arises on all transfers to (Q)ROPS that had been requested on or after 9th of March 2017. There are however exemptions, which if met will allow the transfer to proceed without an OTC. These include:

1 The member is resident in the country in which the (Q)ROPS receiving the transfer is established2. The member is resident in a country within the European Economic Area (EEA)

This means UK Nationals now living in Ireland will be entitled to transfer to a QROPS in either Ireland or Malta without an overseas transfer charge (OTC)

Investment Options

We work with a range of leading global pension providers and trustees that offer pension solutions that have been registered by the HMRC as (Q)ROPS, so you can be assured of a superior and secure service.Clients who transfer their pension schemes with Irish based International Pension Transfer Consultants Limited to a (Q)ROPS either in Ireland or Malta can access a range of investment managers ranging from large international life assurance company platforms to Irish based stockbroking houses which can include Cantor Fitzgerald and Quilter Cheviot.In certain situations direct property investment in Ireland and internationally may be possible.

Recommendation

Regardless of where you are located, International Pension Transfer Consultants Limited can help you build a more self-assured and accommodating financial future.

Contact us today at...

International Pension Transfer Consultants Limited29 Windsor Place, Dublin 2, Ireland

Tel 00353 1 6815293 www.europeanpensions.ie

New (Q)ROPS solutions make effective retirement planning easier for expatriates. If you are interested in transferring your UK pension to where you are, or to where you are going, or to a third party(Q)ROPS jurisdiction make sure to talk to one of our (Q)ROPS pension transfer experts today. We can help you build a more self-assured and accommodating financial future. So if you are the holder of a UK deferred benefit pension scheme and now live in Ireland and are interested in finding out more about the options available to you from a (Q)ROPS, then you should contact the experts! Regardless of jurisdiction, International Pension Transfer Consultants Limited are in a position to assist.

Speak to one of our pension transfer specialists today.We look forward to being able to steer you through the (Q)ROPS maze.