UK Pension Transfers to QROPS in Gibraltar
QROPS GIBRALTAR – If you have an existing UK pension and want to retire overseas or move to work abroad, we can help you move your pension to a Qualifying Recognised Overseas Pension Scheme in Gibraltar to get your pension out of the UK tax net.
Once you have decided to move overseas, there are a number of things you need to think about. Should you sell your UK house? What portion of my money will I move to the currency of the country I am moving to? Do I need to set up an offshore bank?
But, one of the first things you should sort out is your pension. A QROPS in Gibraltar can transfer your pension out of the UK tax system where it can grow tax free and avoid any taxes on death. Gibraltar also has a very low income tax rate. So, instead of paying 20% – 45% in the UK, you only pay a flat rate of tax of 2.5% in the UK.
Furthermore, you can get a higher amount of your pension as a tax-free cash lump sum than in the UK and you can choose the currency of your pension.
Some pensioners in Europe have had their pensions income drop by over 20% as the EUR has swung against the Pound. Transfer your UK pension to EUR, USD, keep it in GBP or transfer to the currency of your choice.
Guaranteed QROPS Gibraltar Pension Scheme
We can provide you with a Guaranteed Pension Scheme in Gibraltar. The QROPS Gibraltar Guaranteed Pension Scheme will pay you a fixed rate of interest and is guaraateed by the Gibraltar government. This is a higher rate savings account based in Gibraltar.
The Gibraltar Savings Bank will set you up with a 5 year fixed interest account. This high interest bank account in Gibraltar is secured by the Gibraltar government against bank insolvency.
If you want a guaranteed QROPS pension scheme, we can provide you with a guaranteed scheme.
Further Protection of a Gibraltar QROPS
The Gibraltar Association of Pension Fund Administrators provide extra security and protection for your overseas pension scheme. Gibraltar is a British colony and the local language is English. Furthermore, the legal & financial standards in Gibraltar have always been very high, following international codes of practice.
Gibraltar has now become one of the top QROPS destinations in the last couple of years according to the GAPFA thanks to QROPS Gibraltar legislation and Gibraltar code of conduct. HMRC and Gibraltar are now in constant contact and Gibraltar has even developed their its own QNUPS which are overseas pension schemes which hold new offshore monies to protect you from UK IHT on any worldwide bank accounts in your name.
Gibraltar also has a standard code of conduct for QROPS pension transfers to Gibraltar. The Gibraltar QROPS guidelines can be found below. This should strengthen Gibraltar’s growing QROPS popularity.
Code of practice for UK pension transfers to QROPS in Gibraltar.
QROPS Gibraltar Tax
What are the taxes on a Gibraltar QROPS?
A Gibraltar QROPS avoids all UK taxes as long as you remain retired abroad. You need to remain offshore for 5 years to get the benefits of a QROPS, otherwise your pension will fall under UK pension legislation.
You avoid UK income tax immediately as a non-resident, but you don’t avoid the UK tax on death until you have been offshore for 5 years
You also cannot access the 30% tax-free cash lump sum until you have been abroad for 5 years. If you need to access before 5 years are up, you can only access 25% like the UK
A Gibraltar QROPS after 5 years avoids all UK taxes as long as you remain abroad
Even if you return to the UK, you would get what is known as ‘top slicing’ relief and any growth whilst you are away wouldn’t be taxed as the pension would be crystallised upon transfer to a QROPS
You only pay 2.5% flat rate income tax in Gibraltar. This may be considerably less than the 20% – 45% you pay in the UK.
There is no tax on death of a Gibraltar QROPS. In the UK, you pay can pay up to 45% tax upon death in the UK. You can avoid that in Gibraltar altogether and pass on your entire pension pot as a cash lump sum to whoever you like or we can set up your pension pot to pay an income stream after your death.
How Does the Transfer to a QROPS in Gibraltar Work?
We can do all the paperwork on your behalf. We will contact your current pension provider and make sure your pension is transferred smoothly to a QROPS in Gibraltar. Once you have a transfer value for your current pension pot, we can liquidate your current pension scheme and the cash will be transferred to a bank in Gibraltar where the Gibraltar trustees will administer your pension scheme.
You can transfer and consolidate multiple UK pension schemes into one place.
We will find the cheapest QROPS in Gibraltar to suit your investment options. We have relationships with all the major Gibraltar QROPS providers in the region. We can compare Gibraltar QROPS on your behalf to give you the best value and seek the best investment plans for your pension.
Gibraltar QROPS Rules
How will my pension be paid out in retirement
You will be paid a 30% tax-free cash lump sum which can be taken at any time as long as you have been offshore for 5 years already.
The rest of your pension, the other 70% would have to give you a pension income for the rest of your life. You can take quite a large pension income. Compared to 10 years ago, you can take about another 50% higher income per year, although we recommend taking a lower income as most pensioners underestimate how long their pension will need to last, which would be 30 years plus on average after retirement if in good health.
What Happens to a Gibraltar QROPS if I Move to Another Country or the UK?
The QROPS trustees we use in Gibraltar have may flexible investment and pension options. We can transfer, for example, to a QROPS in Malta if you decide to retire in Europe. If you return to the UK, please email us and ask for our free guide explaining ‘What happens to my QROPS on returning to the UK’.