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Thinking of living abroad? Here’s some useful advice…
06.05.2012There’s plenty to think about if you’re considering making the move and living abroad; you need to research your new destination, think about your long-term plan and organise important safety measures such as life assurance or medical cover. If your living abroad adventure is taking you from the UK to another country within the European Economic Area, your move should be fairly straightforward in terms of the legalities. If you’re …
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Gibraltar QROPS – Available and Improved
While Gibraltar has had its fair share of problems with its nearest neighbour, Spain, it has long been a popular retirement destination for British expatriates – this is due largely to its low tax, governmental stability and the same native tongue.
Previously, Gibraltar faced some issues with HM Revenues and Customs (HMRC), who alleged that the conditions applied to Gibraltar QROPS weren’t in accordance with their legislation – they argued that the income tax applied to pension payments at a 0% rate couldn’t be considered a tax and was just a way of stepping over the red tape to meet the rules they had imposed. This perceived lack of compliance saw Gibraltar QROPS providers instating a pension transfer ban until a suitable agreement could be made.
Following lengthy debates, the Gibraltar government shifted their position to bring their tax legislation in-line with standard QROPS regulations. This has led providers to start trading again, with the assurance to investors that any pension transfers to Gibraltar now fall in with HMRC directives.
Gibraltar QROPS – How they Work
Gibraltar QROPS now offer the investors the peace of mind that they are benefiting from the low tax rates of the country, while being able to take up residence in any location outside of the UK. Income tax on pension benefits are applied according to the scheme-holder’s nationality and their country of residence – only the 25% lump sum is free of taxation liability.
Gross benefits can be paid out in a range of major currencies, such as Euros, and the same investment opportunities are offered on Gibraltar QROPS as those sourced from other jurisdictions. Additionally, as with other QROPS purchased elsewhere, investors are not required to set up an ASP (Alternatively Secured Pension) or buy an annuity. So alongside the new compliance with HMRC and the fact that Gibraltar offers very competitive rates on the taxation of fund growth, it may be worth considering them for your QROPS pension.
Securing Your Future with Good Advice
While we have looked briefly at the ways in which you can make your pension investments work for you by buying into a Gibraltar QROPS, it is imperative that you get full, professional support when making decisions for your future. Our expert financial advisers can help you to understand your options and decide on a way forward – so get in touch now and find out what we can do for you.
Read our QROPS FAQs or download our free QROPS advice
