http://www.hmrc.gov.uk/pensionschemes/qrops.pdf

Although no reason has been given the Singapore authorities take is that HMRC simply do not understand the Singapore tax regime.

Another possibility of course is that HMRC considers the spirit of the concession is being abused, with some schemes allegedly “winding up and paying out” once the five years reporting period has expired.

No doubt there will be an appeal and regardless of which way that goes it is clear that Singapore based QROPS will continue to come under the watchful eye of HMRC, who will, as we have always acknowledged, seek out and close down abuses.

(Via Homes Worldwide – Latest Property & Travel News.)

Whilst because of the allowances available this affected non residents more than residents it is none the less a welcome move.

This also means that non resident owners who did not like to sort out their own wealth tax may no longer need to retain the services of a fiscal representative; however, you do need to check out your agreement with your representative and give them notice as soon as possible.

For further information on Spanish Wealth Tax.

Under current legislation, scheme members could be subject to an 18% tax charge on withdrawals, in addition to paying income tax in their host country.

All of which makes us wonder why anyone would consider an IOM QROPS in the first place?

Firms marketing IOM QROPS are hoping the Isle of Man treasury will lower its tax charge for scheme members who are already paying pension income tax in their host country as The Island has applied this principal for its own ex-pats.

Frankly we don’t think “hope” is a good basis for planning!

Further information on our QROPS Services.

In an Irish scheme, the pension can be transferred to an approved retirement fund and there is no requirement to buy an annuity. On death, the fund can also be left to beneficiaries, although it will be subject to 20 per cent inheritance tax under the Irish rules.

But transferring the scheme to Ireland is only “wholly acceptable” if there is a genuine existing trading company in Ireland and the member is employed there.

David Seaton, director of consultancy at Rowanmoor Pensions and current Board member of the Association of Independent Financial Advisers, said: “It is our understanding that some practitioners are offering to establish trading companies, employment contracts and even accommodation to UK companies in an attempt to break the UK pension scheme rules.

“IFAs who get involved in such practices are likely to become the subject of enquiries by the Pensions Regulator, HMRC and the Financial Services Authority.

He added: “The Irish scheme must also obtain the status of a Qualifying Recognised Overseas Pension Scheme (QROPS) from the HMRC, as without QROPS status the transfer from the UK scheme will be an unauthorised payment, which could result in a combined tax charge of 104 per cent.

“I was also warned that the Irish Revenue and the UK HMRC both communicate to ensure only genuine transfers take place.”

Article Courtesy; Daily Telegraph

This indicates that Professional Independent QROPS and Pension Advice is of paramount importance. Further information can be obtained from Free My Pension.

What is Free My Pension? and how can I transfer my pension overseas?

If you live overseas you are entitled to move your pension with you and whilst it has always been possible to transfer and or take pension benefits abroad, under pension simplification in April 2006 this became very much easier.

Why leave your funds in the UK?

In the UK the earliest that you can draw on your pension benefits is age 50 (unless you are in a special occupation or are able to claim early retirement through ill health) and this is soon to increase to age 55.

See below for further information on how we can free your pension…

* Funds left in UK
* Living Overseas
* Why transfer your pension
* Direct Benefit Comparison
* FREE – No obligation report!

Spain is due to ask the Organisation for Economic Cooperation and Development (OECD) to return Gibraltar to a blacklist of tax havens that refuse to cooperate in fighting money laundering and other financial crimes, despite the British colony’s promises of greater transparency.

A spokesman for the Spanish tax office told EL PAÍS last week that the only fiscal information Spanish authorities receive from Gibraltar is “scarce and mostly useless,” and that the government of the rocky outcrop on Spain’s south coast routinely refuses to cooperate in investigations into money laundering and tax evasion.

“As far as we are concerned, Gibraltar is still a non-cooperative tax haven,” the Spanish official said.

Copyright El Pais 2008

After a qualifying period individuals can access their funds in their entirety and use the capital and income in the way that is most tax favourable for them and upon their death, they can leave it to whomever they like.

This compares most favourably with the pension regime in the UK and ex pats around the globe should be making it a priority to remove their funds from the UK as quickly as possible.
A degree of caution should be exercised because some QROPS appear to rely on artificial contracts of employment, which would of course incur huge penalties.

For clear impartial and appropriate advice contact Free My Pension.

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