The background to QROPS is to allow a mobile workforce and individuals to move freely without restrictions and not to have a UK Pension adversely affect their finances in their new residency.
The main reasons people who are considering being non UK resident consider QROPS are:
- Significant income tax savings and no withholding tax. All income is paid Gross.
- More flexibility on the level of income taken at retirement after five full UK tax years.
- No requirement to buy an annuity or alternatively secured pension at any age.
- On death pass the fund intact to spouse and heirs UK inheritance tax free and free of succession tax in many jurisdictions.
- No liability to future changes in UK Pensions taxation or legislation.