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    Specialist Help for USA Residents

    It is estimate that there are over 1.5 million British expats now living in the USA. A very large proportion of this number will never return to the UK. Choosing to live out their twilight years in sunnier climes.

     

     

    The USA is certainly a favourite destination for many UK ex-pats, however transferring a pension into QROPS is problematic for stateside residents as well as ex-pats.

    For the first time some QROPS is now available that tackles the necessary legal and administrative issues that have prevented US residents and nationals from picking up the tax and investment benefits or transferring to a QROPS.

    QROPS advisers do confirm that the HM Revenue and Customs listings of QROPS have included several US 401(k) pension schemes more or less from day one of April 2006. In principle QROPS transfers were available to US nationals living abroad along with UK ex-pats moving to the United States.

    It does remain that the HMRC’s counterpart in the USA namely the Inland Revenue Service (IRS) has so far refused to recognise QROPS transfers into a QROPS USA 401(k) pension by UK ex-pats living there. The reason for this they claim is that the QROPS structure is not legal.

    A similar no-go status was imposed on US nationals overseas who transferred from a 401(k) to a QROPS.

    QROPS 401(k) And IRA Transfers

    Both triggered IRS tax penalties on any funds that were transferred.

    This unfortunately is likely to tighten up further from January 2013 when the Foreign Account Tax Compliant Act comes into force. The Act will virtually bar all US residents and US nationals living outside the country from transferring their pensions into a QROPS.

    Although this complicates any QROPS transfers in or out of a 401(k) pension some providers have managed to re-structure the master trust that manages a QROPS into a USA-friendly legal entity.

    This is a legal alternative that opens QROPS USA investments as a two-way street between transferring from a UK pension to a US QROPS and likewise from a US 401(k) to an offshore QROPS.

    The framework is now in place, however QROPS USA is still tied up in red tape and successful transfers do require patience, specialist skills and expertise.

    The possibility of moving QROPS pension transfers for UK ex-pats living in the US does open a new world of investment opportunities that were once unavailable.

Qrops Pensions Guernsey

Guernsey has an international reputation of being a stable, low tax offshore financial centre which serves many British ex-pats.

QROPS pensions for British ex-patriates have been available in the Channel Islands since the scheme was established by a change of law in April 2006.

Changes in the law acted like a magnet enticing QROPS investors, many ex-pats feel more confident when dealing with a pension provider that speaks English as well as having historical ties with the mainland, along with low tax benefits.

These benefits are available worldwide for British ex-pats and anyone else who has their own UK pension rights through the very popular QROPS.

Guernsey QROPS Also Offer 25% Loans To Members

Guernsey QROPS allows ex-pats to settle wherever they wish in the world and even to travel between homes in various countries outside the UK. They can pay a 25% tax free cash lump sum and gross premium benefits that are taxable wherever the pension holder is resident, however this is not applicable when in Guernsey.

Resident restrictions that usually mean only the wealthy can move to Guernsey do not actually apply when taking out a QROPS pension.

A big plus for Guernsey QROPS pensions is the facility to borrow an additional 25% of the offshore pension providing certain requirements and conditions are met.

Why don’t you discuss this in more detail with a qualified financial adviser? Although the benefit is written into Guernsey QROPS rules means not every provider includes the options in their schemes.

It’s worth remembering that although Guernsey is the Channel Island’s QROPS, other products are also offered in Jersey that don’t necessarily follow the same rules.

Competitors Push Down Guernsey QROPS Charges

Guernsey QROPS providers operate in a very competitive market with the nature of the island’s offshore financial services making them extremely attractive to ex-pats. The fact that so many companies want a slice of the investment action helps to push down costs for anyone who is interested in a Guernsey based QROPS pension.

This means that Guernsey QROPS offer numerous benefits such as flexible wide ranges of investments and self-managed QROPS.

At one time Guernsey did face some criticism from HM Revenue and Customs about administration and trusts, however the exploitation of QROPS rules were quickly sorted out by the Guernsey Financial Regulator.

Overall this does not really reflect Guernsey in a bad way as a QROPS jurisdiction, it was a one off involving certain manipulations of scheme rules.

Additional Information About Guernsey QROPS

To understand more about the tax advantages of a Guernsey QROPS, discuss investment options with a professional financial adviser. Endeavour to contact QROPS.net and we can then recommend a qualified QROPS expert who can help you.

For more information, visit the HMRC website here.

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