Qrops Pensions Singapore
Singapore is the only country to be thrown out of the QROPS organisation since the inception of qualifying recognised overseas pension schemes on April 6th 2006.
HM Revenue and Customs dismissed Singapore from the QROPS list without providing a reason in May 2008 and has also refused to reinstate the country despite the threat of court action.
No reason has ever been disclosed although the Singapore financial regulator did find a financial firm twenty one thousand pounds for allowing unlicenced advisers to provide QROPS and other financial advice. This happened just before the country was removed from the QROPS listing.
To date, the Singapore financial regulator has not commented on HRMC’s action in the public domain.
Singapore QROPS Investors Do Have To Pay Tax Penalties
Unfortunately this has left hundreds of QROPS investors in financial difficulty because HRMC is demanding up to 55% of their original fund investment in tax and penalties for making unauthorised pension payments.
Some leading financial advice firms however have transferred more than a thousand of these investors out of Singapore into new QROPS by agreeing terms with the taxman.
The remaining investors are advised to move their pension funds to a new QROPS immediately to help minimise their losses.
To sum up the Singapore situation, the country is just one of more than forty countries operating one thousand four hundred QROPS pension schemes worldwide but remains the only country to be stripped of QROPS status.
The UK government’s statistics show that around 3,500 ex-pats and international workers with UK pension rights consolidate their funds into a QROPS every year and that the total QROPS funds under management exceed a whopping 0.5 billion pounds.
QROPS Are Very Tax Effective And Are Advantageous Investments
All the evidence suggests that on the whole the vast majority of QROPS schemes are very tax effective and certainly advantageous for investors. This is true compared to leaving pension funds in the UK as the QROPS providers run reputable and honest businesses.
Naturally like many products or services that involve large sums of money, unsavoury incidents do occur from time to time.
This is down to the darker side of human nature, rather than the fault with QROPS regulations.
Taking sound advice from a regulated adviser with a background in successful QROPS transfers is necessary for additional protection. Make sure the adviser is also experienced in QROPS transfers to the tax jurisdiction you choose, as the rules and regulations can differ enormously between countries.
For more information, visit the HMRC website here.