- The transfer to a QROPS plan can be effected without the deduction of any UK tax.
- The transfer to a QROPS plan can be effected without the deduction of any UK tax, provided it is less than the Lifetime Allowance limitations.
How will benefits or withdrawals of a QROPS Pension Transfer be taxed after the initial 5 year period?
- This depends on where you are a tax resident of the time. There are schemes that achieve a minimal tax rate.
- We believe that it is best to discuss this with an adviser who will be able to provide specific information where you are tax resident.
- This means for example that if you take benefit from a Guernsey based QROPS (which is often recommended), there will be no tax deducted at source from payments that are made from the scheme.
- You will however be subject to any taxation on such payments that are due in your country of residence at the time.
This depends on two factors:
- The tax law of the country in which the QROPS is held (Jurisdiction).
- When you start drawing on these funds, the tax law of the country in which you reside.
Please speak with a QROPS Advisor for more information.