Have I been mis-sold an QROPS?

What is a QROPS?

QROPS is an overseas pension scheme that meets certain requirements set by HM Revenue and Customs (HMRC).

A QROPS can receive the transfer of UK Pension Benefits in the vast majority of privately administered personal or corporate pension schemes, without incurring an unauthorised payment and scheme sanction.

For investors who have been non-resident in the UK for at least five tax years, the QROPS becomes subject to the laws of the overseas jurisdiction in which it is based. Consequently, you can take income with no limits and there will be no deduction of tax at source(although taxation will apply in accordance with your current country of residence.)

Who is eligible for a QROPS?

The typical scenarios are where a UK resident leaves the UK to emigrate (or retire abroad) having built up a pension fund within a privately administered scheme or when someone born outside the UK has spent some time working in the UK, building up benefits an a UK pension Scheme, decides to return to their own country.

The QROPS does not have to be established in the new country of residence, thus providing greater flexibility and wider choice of scheme provider.

What does a mis-sold QROPS look like?

If you have been advised to transfer your Final Salary Pension Scheme, Occupational Pension Scheme, or personal pension to a QROPS and you have not relocated overseas or have no intention of relocating overseas, it is very likely you have been mis-sold a pension transfer and should contact us……….

Whilst appearing an attractive proposition because of the potential tax benefits, unless you leave the UK, there is little or no benefit from such a transfer and the likelihood of higher charges and potential issues in securing your pension benefits.

Reference: Case Study 2.Mr P, 5.Mr S. 

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