• QROPS Help Centre, your definitive guide to finding the right qrops pension transfer. All areas covered from Spain to France and from Cyprus to New Zealand. Contact Us today for specialist advice in simple plain english.

    Specialist Help For USA Residents

    It is estimate that there are over 1.5 million British expats now living in the USA. A very large proportion of this number will never return to the UK. Choosing to live out their twilight years in sunnier climes.

     

     

    The USA is certainly a favourite destination for many UK ex-pats, however transferring a pension into QROPS is problematic for stateside residents as well as ex-pats.

    For the first time some QROPS is now available that tackles the necessary legal and administrative issues that have prevented US residents and nationals from picking up the tax and investment benefits or transferring to a QROPS.

    QROPS advisers do confirm that the HM Revenue and Customs listings of QROPS have included several US 401(k) pension schemes more or less from day one of April 2006. In principle QROPS transfers were available to US nationals living abroad along with UK ex-pats moving to the United States.

    It does remain that the HMRC’s counterpart in the USA namely the Inland Revenue Service (IRS) has so far refused to recognise QROPS transfers into a QROPS USA 401(k) pension by UK ex-pats living there. The reason for this they claim is that the QROPS structure is not legal.

    A similar no-go status was imposed on US nationals overseas who transferred from a 401(k) to a QROPS.

    QROPS 401(k) And IRA Transfers

    Both triggered IRS tax penalties on any funds that were transferred.

    This unfortunately is likely to tighten up further from January 2013 when the Foreign Account Tax Compliant Act comes into force. The Act will virtually bar all US residents and US nationals living outside the country from transferring their pensions into a QROPS.

    Although this complicates any QROPS transfers in or out of a 401(k) pension some providers have managed to re-structure the master trust that manages a QROPS into a USA-friendly legal entity.

    This is a legal alternative that opens QROPS USA investments as a two-way street between transferring from a UK pension to a US QROPS and likewise from a US 401(k) to an offshore QROPS.

    The framework is now in place, however QROPS USA is still tied up in red tape and successful transfers do require patience, specialist skills and expertise.

    The possibility of moving QROPS pension transfers for UK ex-pats living in the US does open a new world of investment opportunities that were once unavailable.

Qrops Pensions New Zealand

New Zealand is a long way from the UK however there are still around 30,000 British ex-pats a year who decide to relocate to the islands and make them their home.

Any ex-pat who has contributed to a UK pension can if they wish transfer their funds into a QROPS. In New Zealand pension fund growth is taxed while other benefits are not taxed at all.

PLEASE NOTE: Due to the Draft Finance Bill 2012 the New Zealand loophole no longer exists. You will only be able to do a QROPS if you live and are resident in NZ.

Unfortunately, these dreams have been put on hold by new regulations proposed by Her Majesty’s Revenue and Customs (HMRC) department that will tighten the QROPS market.

The QROPS regime was intended to allow UK emigrants to shift their pensions to complying offshore providers on the assumption they would have access to their (tax-advantaged) retirement funds under similar terms as they would have had at home.

However, some jurisdictions interpreted the QROPS rules rather loosely, using the scheme as a ruse for UK residents to collect their tax-free pensions early.

It’s worth noting however that some UK pension transfers into a New Zealand scheme may not enjoy full tax exemption.

It’s extremely important to acquire up-to-date advice as tax rules between the United Kingdom and New Zealand are subject to change at short notice. With this in mind it can definitely affect an investment decision about moving your pension into a New Zealand QROPS.

New Zealand QROPS Could Pay Out Enhanced Tax Free Lump Sums

The majority of UK pension schemes can be transferred into a New Zealand QROPS. This does exclude the state pension or any funds where the saver has already bought an annuity.

New Zealand QROPS does fall within HM Revenue and Customs rules as the New Zealand government actuary has confirmed to providers that HMRC has written to accept Kiwi Saver and superannuation schemes so that they all meet QROPS compliances. As an additional bonus some New Zealand QROPS also pays out more than 25% of a tax free lump sum, although this does happen under strict rules and has to meet certain criteria.

The Need For Qualified Advice

Like so many other QROPS, New Zealand plans are good for some QROPS transfers while not so good for others. It’s therefore essential to seek competent advice from a regulated and qualified financial company that has experience in dealing with New Zealand QROPS transfers.

The complex nature of New Zealand QROPS may mean an inexperienced adviser could miss key points that may prove to be costly for you in the future.