Comparison of existing Sovereign Qualifying Recognised Overseas Pension Schemes
|
Scheme: |
Calpe Retirement Benefit Scheme |
Calpe Lite Retirement Benefit Scheme |
Centaurus Retirement Benefit Scheme |
|
Jurisdiction |
Gibraltar |
Gibraltar |
Malta |
|
Initial Set Up Fees |
£750*option A |
£300 |
€800* option A |
|
Annual Fees |
£900* option A |
£500 |
€1100* option A |
|
Investment House ** |
Option A – RSK/RL 360° |
RSK/RL 360° |
Option A – RSK/RL 360° |
|
PCLS/CD Maximum |
25-30% |
25-30% |
25-30% |
|
PCLS/CD Min. Age |
55 |
55 |
50 |
|
Max. age Benefits must be taken |
75 |
75 |
70 |
|
Withholding Tax |
2.5% Capped Drawdown only |
2.5% Capped Drawdown only |
Dependent on whether a DTA is held with the members country of residence |
|
Min/Max Investment |
Over £100,000 |
£25,000 – £100,000 |
Over £100,000 |
|
Trustees |
Sovereign Trust International Limited |
Sovereign Trust International Limited |
Sovereign Pension Services Limited |
|
Termination Fee |
£1,500 or free if to another Sovereign scheme |
£500 or free if to another Sovereign scheme |
€1,500 or free if to another Sovereign scheme |
|
HMRC No. |
504402 |
504488 |
504380 |
|
Trust Deed Date |
30 July 2012 |
7 September 2012 |
02 July 2012 |
|
Bank A/C Date |
30 August 2012 |
02 November 2012 |
31 August 2012 |
I should be pleased to talk to you about any of these schemes; simply Contact Me with more details.
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What are QROPS?
On moving abroad many British expatriates will have left their UK pension arrangements in place. These pensions remain subject to UK pensions law. As a result, the pension income may be subject to UK income tax (20% deducted at source). Additionally, the UK investment restrictions relating to pensions would apply indefinitely and the member payment charges (up to 55%) may apply on death.
Under UK legislation introduced in 2004, effective from April 2006, expatriates or UK residents who have a demonstrable intention to move overseas may transfer the value of their UK pension rights to a non–UK pension scheme and thus potentially avoid most of the normal restrictions imposed on the pension fund if it remained in the UK. The transfer must be made to a Qualifying Recognised Overseas Pension Scheme (QROPS) that is recognised by HM Revenue & Customs (HMRC).
Do I qualify?
Whilst cases should be examined on an individual basis there are a number of basic conditions that must be fulfilled in order to transfer to a QROPS.
To gain the maximum benefits from a QROPS arrangement, the member must become non-UK tax resident and remain so for at least 5 full complete and consecutive UK tax years.
The existing UK pension scheme can be in drawdown (i.e. benefit being paid from the fund directly – an approach now referred to as “Capped Drawdown”) before transferring to a QROPS. However, there are restrictions and if the permitted Pension Commencement Lump Sum (PCLS) has been taken, no further PCLS is allowed.
UK rules impose a statutory Lifetime Allowance (‘LTA’) relating to the amount payable from UK registered pension schemes that will be treated as tax-privileged. Transferring benefits to a QROPS is known as a Benefit Crystallization Event (‘BCE’) and the value of pension rights transferred in excess of the lifetime LTA will be subject to UK tax.
Any questions? Just Contact Me and I shall try to help you.
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