Pension QROPS info for UK citizens coming to Thailand to retire

For UK Expats or anyone considering living on foreign shores, leaving Pensions in the UK has been a problem both for control and how to take benefits in a tax efficient way. This has now changed. Real advantages are now available with a little planning and advice which gives Pensions the flexibility we would all like.The benefits of moving into a QROPS is that our UK finance specialist here in Bangkok has over 50 years experience (company) in providing financial advice and that we are QROPS specialists.
We have access to the most secure QROPS plans with low charging structures.
Seek advice from one of our specialists today. Our consultation is free of
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Pension Transfer: QROPS Guide Thailand

If you are from the UK and you are thinking of moving to Thailand or you are here already, you can take advantage of changes in pension regulations from ‘A-Day’, April 6, 2006. You can now transfer your pension offshore to a tax beneficial jurisdiction such as Guernsey or the Isle of Man with the aid of QROPS specialists. We have listed some of the major benefits of a QROPS pension transfer below:

QROPS (Qualifying Recognised Overseas Pension Scheme) is a scheme in which you can transfer most types of UK pension offshore (e.g. Guernsey) in order to avoid buying an annuity and become tax efficient. It is designed for expats who live abroad and do not intend to return to live in the UK

Our UK pension specialist has been in Bangkok and the owners of the company have 50 years of experience between them. Our UK Manager has been in Thailand for 13 years now and can assist all UK foreigners with pension assistance. Just email us and we will refer your email to our office.

The benefits:

Investment freedom

A wide range of investment opportunities are available within a QROPS (mutual funds, bonds, shares, cash, property, exchange traded funds) which allow more freedom of choice in investment to capitalize on opportunities in the market.

Currency control

The volatility in exchange rates over the last year have highlighted the importance of holding assets in different currencies. QROPS can hold a mix of Pounds Sterling, U.S. Dollars or Euros.

No need to buy an annuity

Most retirees on retirement will take a tax fee lump sum (25%) with the remainder being used to purchase an annuity. To make matters worse, on your death your widow will receive a reduced pension (50%) and on her demise you cannot leave it for your heirs. If you transfer into a QROPS you will not have to buy an annuity (unless you want to) and the balance will be distributed to your heirs appropriately without the need for probate. These benefits apply immediately even if you have been out of the UK for less than five years.

Tax savings for your heirs

Pension rights transferred into a QROPS escape UK inheritance tax. Inheritance tax at the nil rate band is $325,000 for the 2010/2011 tax year. Above that, inheritance is taxed at 40%. There is an extra $55,000 allowance if your wife is not domiciled in the UK.

Tax efficiency for you

After 5 years, you will no longer need to report to the HMRC. Implementing the correct strategy with the help of a financial advisor can mitigate income tax, capital gains tax and inheritance tax.

What about a 100% lump sum?

Contrary to what many advisors may suggest, QROPS do not allow people to take more than 25% of their fund as cash. If you were to take more than this, HMRC could impose a 55% penalty, even if you had been a non-UK resident for more than five years.

What if I have already been a non-UK resident for more than 5 years?

After you have been a non-UK tax resident for five complete tax years, all reporting requirements to HMRC cease (as long as you remain a non-UK resident). You can transfer your pension into a QROPS at any time but we only recommend that you do so if you are, or plan to be, a permanent non-UK resident.

Is a QROPS beneficial for everyone?

Not always. Final salary schemes in the UK offer guaranteed income as well as built-in annual increases linked to inflation or a statutory amount. A suitability report would need to be prepared to make a reasoned analysis. Smaller pensions are better off in the UK as there are certain minimum charges incurred upon transfer to QROPS.

Can I move an annuity into a QROPS?

No. An annuity is a structured investment that you buy with a pension that pays you a set income each year. If you have purchased an annuity in the UK already, there would be no advantage of moving into a QROPS.

Who provides QROPS?

There are many providers of QROPS. All QROPS providers must be approved by HMRC in the UK. Theses schemes will have varying charges and structures, so it is important for you to consult an independent financial advisor who can write a suitability report for you to determine whether a QROPS is right for you.

The weather, food, medical services, pharmacies, transport etc are so much better in Thailand than the UK for retirees and Thailand is a mecca for the retired. There are now many Moo Baans ( housing estates) to cater for the elderly and Thailand boosts the number 1 Hospital in the World Bumrungrad. Theres just no better place to live when you are retired than Thailand.