Tax Implications of a QROPS Transfer

  1. What are the tax implications of moving my UK pension to a QROPS?

    • 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.
  2. 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.
  3. What are the tax implications once I have moved to a QROPS?

    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.