Friday, 26 October 2012


Week commencing 29th October 2012 is QROPS Week @ Financial Pages in Spain. An ideal time to follow the Blog and get your updates

Qualifying Recognised Overseas Pension Schemes

Conceived in the UK Finance Act 2006 but not effectively marketed until late 2007. Major changes were made, in part to remove abuses, from 6th April 2010. QROPS are UK Pension Transfers which require professional and authorised advice and are intended to provide lifetime income.

Key Facts

  • Pension funds accumulated in the UK have received favourable tax treatment, including tax relief on contributions and HMRC will seek to maintain control over the future use of funds. Their fundamental rule is that the fund produces an income for life

  • Only 30% of the fund can be used to provide a Pension Commencement Lump Sum (PCLS) which is often called Tax-Free Cash

  • 70% of the fund is utilised to provide an income for life. The investment of these funds will be determined by local rules but cannot be invested in residential property

  • UK Pension Plans and Schemes can only transfer available funds to Her Majesty’s Revenue & Customs (HMRC) approved QROPS arrangements in acceptable jurisdictions

  • Income can only be paid gross (no tax deducted) from jurisdictions which have Double Taxation Treaties with the UK. Some jurisdictions may however deduct tax on income before distribution

  • QROPS providers can only accept transfers where the advice has been given by authorised & regulated financial advisers

  • No QROPS scheme will be approved if it pays 100% of the fund as cash. The principal of an ‘income for life’ must be maintained

If you require clarification or information please email me


The following posts will appear during QROPS Week

1.     Malta QROPS

2.     New Zealand QROPS    

3.     Introducing Switzerland QROPS

4.     Developments and the future of QROPS

5.     Comparing QROPS jurisdictions

David Goodall
Financial Pages in Spain