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Good news for non-resident U.K. retirees
Qualifying Recognised Overseas Pension Schemes (QROPS)
Graham Macdonald MBMG International Ltd.
Due to one of the European Commission’s “Four Freedoms”, the “Free Movement
Of Capital Act”, designed to benefit natives of the European Union, an
unparalleled tax break has arisen for anyone who has UK Pension Funds but
intends to retire outside of the UK.
This EU Act has produced the Qualifying Recognised Overseas Pension Schemes
(QROPS) with the legislation being passed by Her Majesty’s Revenue and
Customs on Pensions “A” Day, 6th April 2006.
To help clarify the benefits of QROPS a comparison to traditional Pension
Plans is shown here.
Please note that your QROPS only qualifies for the above benefits once you
have been non-resident for 5 years.
The State Pension cannot be transferred to a QROPS but Protected Rights
Funds and GMP may be, along with every other type of UK Pension Fund
including Civil Service and Armed Forces Pensions.
It is advisable to deal with an Independent Financial Advisor (IFA) who has
had many years experience in pension transfers. If your IFA cannot provide
you with valuations and comparisons relevant to your own pension scheme,
showing you all your options, then you should not go ahead as, in certain
situations, transferring to QROPS may not be in your best interests.
Any reputable IFA will show you the full Pension Transfer Report which will
be produced free of charge with no obligation to accept any of the
recommendations. You should also be asked to sign all the relevant
documentation which confirms you have been shown all the appropriate
comparisons. Again, if this is not offered then please do not go ahead with
the Transfer to QROPS.
UK Pension Funds including Final Salary
Schemes
- Funds drawn are subject to UK tax
- Fund has no value on death
- No Fund to tax after death, nothing left
- You take 25% max. tax free lump sum
- Limited Investment Choice
- Typically, 50% spouse pension on death
- Income starts at normal retirement age
- Spouses pensions cannot be combined
- Subject to future pensions legislation
- Pension can be lost through insolvency |
Qualifying Recognised Overseas Pension
Scheme (QROPS)
- Funds are drawn UK tax-free offshore
- Fund passes to your family/estate
- Fund passes to family/estate free of Inheritance Tax
- Greater flexibility on withdrawals
- Unlimited Investment Choice, even after retirement
- 100% spouse pension on death
- Income can start at age 50 (55 after 2010)
- Spouses pensions can be combined
- Protected from future pensions legislation
- Fund protected by Isle of Man Government legislation |
ASEAN backs preparation of oil stockpiling roadmap
Ministers at The ASEAN Ministers on Energy Meeting (AMEM)
plus 3 (China, Japan, and Korea) have agreed to jointly study how to prepare a
regional oil stockpiling plan to prevent shortages and reduce impacts of oil
price surges in the future, according to Thai Energy Minister Lt-Gen. Poonpirom
Liptapanlop.
Revealing the result of the 26th AMEM held in Bangkok last Friday, she said
Thailand had pushed for a basic connection of energy sources under the ASEAN
framework.
The project involves the international gas pipeline linkage from Indonesia’s
Nutuna gas field to Thailand, Singapore, Vietnam, and Malaysia, and the power
transmission line connection.
Commenting on an amendment of the agreement to assist oil-importing countries in
the face of the oil crisis, she said member countries saw a need to alter rules
and regulations to ensure they are in compliance with the amended pact.
A signing of the agreement would take place at the ASEAN Summit to be hosted by
Thailand late this year.
She said AMEM plus 3 approved the preparation of the regional oil stockpiling
roadmap aimed at encouraging development of energy reserves to prevent a
possible shortage and ease impacts of the oil price hike in the future.
The minister said Thailand had proposed to promote Southeast Asia as a
production and distribution center of bio-fuel including ethanol and bio-diesel.
At the same time, Korea had proposed the safe use of a civilian nuclear energy
programme under which a group of three including China, Korea, and Japan are
ready to give knowledge on rules and regulations, technology, and guideline on
the use of nuclear power to interested ASEAN member countries to boost energy
stability in the long term.
Gen. Poonpirom said AMEM participants shared in common the view that alternative
energy, particularly hydro-electricity and bio-energy - in which ASEAN members
have great potential for development - would play a leading role in the future.
With cooperation in alternative energy development, she said ASEAN members
including Thailand would enjoy sustainable energy stability and could reduce
dependence on fossil energy sources. (TNA)
Nok Air submits restructuring plan to transport minister
Low cost airline Nok Air has submitted a financial restructuring programme
to Transport Minister Santi Prompat after suffering losses amounting to some
Bt114 million, according to CEO Patee Sarasin.
Patee said his airline had recently presented a reorganisational plan to the
minister, citing major losses due to the soaring global oil prices which
have also affected all other airlines.
In a bid to reduce its losses, according to Patee, Nok Air has cut its daily
flights to 20 from 70, reduced salaries of senior executives and some junior
staff, and terminated the employment contracts of outsourced employees.
The airline executive said the actions were implemented a month ago but have
not yet produced tangible results as the current falling oil prices would
not have any effect until September. At present, Nok Air passenger capacity
is about 88-90 per cent per flight.
The airline started operations on July 23, 2004, and began its first
international service to Bangalore, India, on May 31, 2007 on a daily basis
but suspended operations to that route in November the same year, citing
non-availability of aircraft and to allow service to other lucrative routes
in Southeast Asia, especially Vietnam. (TNA)
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