However, getting specialist advice is important for a number of reasons.
First, you need to consider the consequences of getting it wrong. The tax breaks offered by Qualifying Recognised Overseas Pension Schemes are only available if the scheme that receives a UK expat’s pension has been approved by HMRC. So it is not enough just to look at the HMRC QROPS list and see that other pensions in your chosen QROPS country have been given the nod – the individual scheme must have been approved. There are some recognised schemes that are not on the list because they wish to remain confidential. In this case, your QROPS adviser will have to make careful enquiries of HMRC about their tax position.
Status as a QROPS is only granted to schemes that are taxed and regulated as pensions in their own countries. Transferring your pension to an unapproved scheme may be seen as an act of evasion, and the taxman could impose a significant penalty (and backdated tax bill) to punish people who may have fallen into that trap.
The next reason to take QROPS advice only from a specialist is due to issues of residence. Whilst your place of residence may seem obvious to you, recent developments in the law mean that the guidelines offered by HMRC are not as clear cut as they might be. Once again, the consequences of getting it wrong are potentially very expensive with penalties and back tax bills a possibility.
Any good financial adviser should have an understanding of the tax efficiencies of the financial products they offer. With overseas pensions, your QROPS adviser should be able to lead and advise you about schemes from all over the world. This is essential because you need to know which jurisdictions are the most tax friendly to your circumstances, investments and aspirations.
QROPS.net have all the expertise you need. With access to and knowledge of the whole of the market, we offer approved schemes that are tax efficient.