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Transferring a UK pension overseas is not an overly complicated process, but it can be a little daunting if you have little knowledge of finance. In April 2012, new rules governing the transfer of pensions were introduced and these affect the information and reporting requirements of Qualifying Overseas Pension Schemes or Qrops. If you have retired or are working abroad, you can move your pension fund to one suitably qualified and you receive many benefits, but payments from any scheme that does not meet the requirements will incur tax charges. Notifying the UK Scheme Administrator Before the transfer to a Qrops pension is initiated, you need to complete a form APSS263 that is available from HMRC or you can notify your current pension scheme administrator in writing if you are aware of the required information. In situations like this, it is best to use a suitably qualified professional to administer the transfer because mistakes can be costly. There are no guarantees that an overseas pension that meets the qualifying criteria at the point of transfer, will stay within the guidelines in the future. This is why it is best to take professional advice so assurances can be made about the benefits of a particular transfer. A test is performed when your Qrops pension transfer is initiated, to ensure your pension fund does not exceed the maximum allowance before tax. In 2012-2013, the maximum size of a UK pension fund is £1.5m so anything over the threshold will incur a charge at 25%. Once the transfer is complete, Qrops pensions can also incur tax charges in the same way UK pensions do meaning a Qrops pension transfer is not a method to avoid this tax. While it is possible to transfer a UK pension by using HMRC forms APSS 251, APSS 253 and the new forms from April 2012 (APSS 262 and 263), it can be a process that is complex and carries a lot of risk. If you are at all uncertain about the requirements, a specialist in Qrops pensions will be able to talk you through any concerns and they usually offer some free advice without the obligation of using their services. While there are many benefits to transferring your pension, a wrong decision can make you regret your actions. This is not a problem in most cases and the vast majority of ex-pats have a better lifestyle when they transfer their funds. Company’s Profile: Whichoffshore provides professional expatriate information on expatriate tax, QROPS pensions and more, in order to help British expatriate make the most of their money. For more information, please visit - http://www.whichoffshore.com/
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Qrops Transfer, Qrops, Qrops Pensions, Qrops Pension transfer,
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