Who can benefit?
Anyone can have a QROPS regardless of their nationality; the only requirement is that they have a UK pension to transfer into the QROPS. Some examples are shown below:
- An Australian investment banker who has spent the last 10 years working in London. Whilst working in the UK he built up a large pension pot and as he does not intend to return to UK, he wishes to transfer the pension to a QROPS. This will allow him to access the pension in the future without the deduction of UK tax wherever he may be based. The pension can also be passed to his heirs when he dies whereas in the UK this would be restricted.
- A South African dentist and his wife have recently returned to SA after spending the last 20 years in the UK. During this time he built up a large NHS pension and now wishes to retire. By transferring the pension to a QROPS, he can receive payments without any tax deducted and also ensure that his wife and children receive the full pension when he dies.
- A 40 year old Briton working in Dubai for a large pharmaceutical firm has two pension plans he wishes to transfer to a QROPS. He does not intend to return to the UK and is also concerned that one of his old employer's pensions is underfunded meaning it could be reduced in the future. He will therefore transfer the pensions to a QROPS so that he has control of the funds and this also allows him to receive the pension without UK tax deducted when he is 55.