Ad Goes here
Ad Goes Here

FAQ 25 – Can I cash-in my QROPS Plan in full?

The legislation covering QROPS does allow for encashment, and is considered as a member payment, which may give rise to a member payment charge, if the member has been non UK resident for less than five complete UK tax years.

Post five years non UK residency then the provisions of the Finance Act 2004 no longer applies and no UK tax is imposed on encashment.

Whilst sometimes seen as controversial the single largest number of authorised QROPS that exist and have received transfers from the UK is Australia which allows 100% of the fund to be received tax free.

Care though as many QROPS providers have given an undertaking to use 70% of funds to provide a lifetime income and must adhere to this or lose their QROPS status.

Speak Your Mind