Do you live in UK but is about to migrate into another country? Here’s some good news for you. If you currently have a UK pension plan, you can now be assured that you’re still going to receive your annuities on a regular basis with the help of QROPS.
The abbreviation QROPS means Qualifying Recognised Overseas Pension Scheme. This program was first introduced in April 2006 as part of UK government’s pension simplification initiative. This system helps an individual to transfer UK pension to a Qualifying Recognized Overseas Pension Scheme (HMRC Approved Schemes).
At present, a wide range of pension plans of the UK can be passed over into QROPS; occupational pensions, stakeholder pensions, personal pensions, self invested personal pensions (SIPPs), pensions used for contracting out of state earnings related pension schemes (SERPS) and many more.
How can one avail the service provided by QROPS? Based on the norms of Her Majesty’s Revenue and Customs, a person will only be able to avail QROPS if he/she is a non-tax resident for at least five years. Once a person meets this condition, the QROPS of the person will not be regulated by the Her Majesty’s Revenue and Customs. The authority also says that a person can make a QROPS transfer from one year of leaving UK.