There are a great many British ex-pats who are not fully aware of pension rule changes introduced by the government of the UK, which aimed to allow more flexibility in the transfer or pensions as well as to take away some of the restrictions and regulations. One specific advantage to this kind of pension transfer set up going into an overseas pension scheme can take away the necessity to buy an annuity and could have other tax advantages as well.
™
The Introduction Of Qualifying Recognised Overseas Pension Schemes (QROPS)
April of 2006 marked the introduction of QROPS, where individuals who planned on leaving or indeed had already left Britain and who have left behind work or private pensions schemes would be able to take advantage of a QROPS transfer being organised. Her Majesty's Revenue and Customs introduced the Qualified Overseas Pension Scheme (QROPS) which in essence gives non-Britain residents to transfer their frozen pension to outside the United Kingdom and the arguably restrictive pension related rules found there.
Many advisers have been contacted by United Kingdom Ex-pats in order to garner more information on how they might be able to improve their retirement options. Pensions that are transferred under the QROPS system are a tax-efficient method that helps to greatly enhance pension opportunities for those involved. Many advisors will tell their customers that leaving a frozen pension in the UK involves very restrictive tax rules for United Kingdom ex-pats to think about, which is entirely correct. It is important to find a financial advisor who can advise ex-pats on their particular and individual circumstances or requirements.
It should be noted, however, that there may be circumstances where it is not completely appropriate to transfer your pension to an overseas pension - each case needs to be treated on its own merits and requires a full and comprehensive review to be undertaken.
When people ask the question - Do QROPS apply to me personally, there a number of basic questions that can point you to an answer. Firstly, you need to decide if you are leaving the United Kingdom. It may be that you have left Great Britain and are working overseas; you may indeed be living in a non-UK nation but still have pensions back home. If these situations do apply to you, you might be well advised to seek professional advisement on overseas pensions, as they do offer a substantial raft of advantages to those who make use of them.
For many different reasons you will find British expats working in all manner of localities across the world. Sometimes it is because of british expatriates the industry that they are working in.
Jobs in industries such as the Oil and Gas are so specialized that it most times results in having to hire expatriates from western countries such as Britain, who have the right experience. These sorts of jobs are based on projects which run in countries of Europe, Africa, Asia, South America or even Australia. Because of the necessity of information sharing and capacity building, British expats at times bring with them skills which they use to improve the operations wherever they may be working. This also helps in creating a more interactive network amongst peers.
When an expat from Britain comes to work in Africa they may prefer to do so only for certain periods of the year which normally involves working for part of the year and going home for rest and relaxation. In certain circumstances one may find that an expatriate has resolved to permanently move to a foreign country that he/she may have been working in. The expats keep in touch with other expats, allowing them to share experiences of working and living in different countries. These forums are available online which gives easy access to any Brit expat irrespective of their location, where they can all share information that they miss from Britain.
As a British expatriate it is important to ensure that you have the correct paperwork at all times. Getting the right visa for your stay is crucial and helps you to keep in line with the law. In cases where an expat has a problem, they can easily be assisted from the British High Commission located in the country that they are working in.
