What are the benefits to a client of moving their pension to a QROPS?
Where a client is, or will shortly become non-UK resident, there are a number of significant advantages that could be achieved by arranging the transfer of their UK Registered Pensions Scheme(s) to a QROPS, including: Where a client is non-UK resident, there is no automatic right for pensions from UK registered Pension Schemes to be paid gross. Liability depends entirely on the double taxation agreement, if one exists, between the UK and the country in which the client is resident. Benefits from Guernsey pension schemes can be paid gross to all non-Guernsey residents. On death before 75, any crystallised element of a UK Registered Pension Scheme will be subject to a 35% tax charge. No such charge applies under Guernsey pension legislation, so provided the client has been non UK resident for 5 or more tax years by the time they die, before age 75, these tax charges will not apply. Tax may of course arise in the clients new country of residence. Note: Benefit crystallisation occurs when
