B19. QROPS or Not?

Fiduciary Wealth Team

If you have moved abroad or are planning to move within the next 12 months one of the major decisions you need to make is what to do with your existing pension arrangements.

Clearly there are some powerful arguments for considering QROPS. In Spain for example income drawn from a QROPS by way of a temporary annuity is taxed very favourably and the potential exists to avoid the 55% death charge applicable to UK pensions where a beneficiary takes a lump sum on the death of the policy holder.

QROPS, however, have been in the spotlight over the past few months mainly because of the way advisers have promoted schemes that flagrantly break the rules set by HMRC by allowing access to bigger lump sums or extra income payments. This culminated in a redrafting of the rules and a threat from HMRC that they would take further action to prevent future abuse.

There might be situations where a QROPS is unsuitable because of the size of the fund being transferred, the cost of setting up and transferring to a new scheme or the fact that the ceding scheme is a final salary arrangement.

Whatever your situation you need to be confident that your adviser can look at your existing scheme objectively and advise you accordingly on the pros and cons of switching. You will know that Fiduciary Wealth are cross border experts specialising in both UK and offshore pension advice. To discuss your personal situation call +350 200 50982 or email

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