| The QROPS regime, established by the 2004 UK Finance Act, created an entirely new framework for greater transferability of pensions. UK tax-relieved pension benefits from UK pension schemes can now be transferred to a qualifying overseas scheme such as the new Praxis QROPS.
The Praxis QROPS is HMRC-approved and offers non-UK residents or those leaving the UK:
- Flexible retirement benefits
- No requirement to purchase an annuity
- Tax efficiency
- Benefits are paid gross to non-Guernsey resident members. Therefore irrespective of the benefits received, a member of the Scheme will only be potentially liable to tax in his or her country of residence.
- Flexible methods and levels of benefit payments
- Having been non-UK resident for five complete tax years, Scheme members can take advantage of a greater degree of flexibility in the method and levels of benefit payments.
- Multi-currency options
- Pension funds can be denominated in currencies other than Sterling to reduce the impact of currency fluctuations. Similarly, benefits can be paid in the currency of their country of residence.
- Portability
- Those who have left the UK may live in several different locations while their pension scheme remains located in a single tax-efficient jurisdiction.
- Open architecture for investments
- The Scheme operates completely independently of all investment managers.
- Totally transparent fee structure
Director of Group Business Origination David Piesing said “being independently-owned means that Praxis has no ties or loyalties to any investment managers. We can select any investment management house to manage a portfolio. Our team of professionals have the experience, expertise, technical knowledge and skills required to administer complex and diverse investment portfolios and ensure that clients maximise the benefits of investing in a QROPS”
FOR MORE INFORMATION CONTACT:
David Piesing
Tel: +44 (0) 1481 737601 david.piesing@praxisgroup.com
David Hearse
Tel: +44 (0) 1481 737679 david.hearse@praxisgroup.com
Jeff Wilkes-Green
Tel: +44 (0) 1481 737619 jeff.wilkes-green@praxisgroup.com
Anna Rhydwen-Jones
Tel: +44 (0) 1481 737630 anna.rhydwen-jones@praxisgroup.com
IMPORTANT NOTICE
Although the tax benefits relate to pension benefits for non-UK residents, residents are still subject to tax on capital and income in their country of residence, and it is important to seek advice from a tax professional in that country. If investments are denominated in a currency other that that of the country where you are resident, any returns may increase or decrease as a result of currency fluctuations.
If you become a UK resident again, and have been non resident for less than 5 years, the usual UK tax rules will apply.
Some jurisdictions do not recognise tax free cash, and if you are resident elsewhere there may be a liability on this sum. Please check before crystallising any benefits.
It is important that, before you transfer your pension, you are advised of the features and benefits of your existing scheme benefits. That is why we will not accept a transfer unless we are satisfied that you have received appropriate advice.
A transfer of a UK pension to a QROPS is a benefit crystallisation event. If the amount of the transfer is over the relevant lifetime allowance, a lifetime allowance charge will be levied. Should this apply, full details and the tax implications should be provided by your adviser.
If your transfer value contains a Guaranteed Minimum Pension or Protected Rights, the ceding scheme has to obtain additional confirmation on certain matters, and this includes advising you that you may not get the same degree of protection in the receiving scheme, and ensuring that you receive a statement of what benefits the transfer value will provide.
All references to taxation are based on our understanding of current taxation law and practice as of the date of this document, and may be affected by future changes in legislation and the individual circumstances of the investor. In addition, the information provided is also based on our current understanding of the relevant Finance Acts. Pension investment values and income arising from them can fall as well as rise.
This information does not constitute advice and we do accept responsibility for its interpretation or any future changes to law. This document has been reviewed and approved by Fundamental Asset Management Ltd, Langwood House, 63-81 High Street, Rickmansworth, Hertfordshire WD3 1EQ telephone number 0845 075 0133, a firm authorised and regulated by the Financial Services Authority, reference number 401123. The FSA’s contact details are The North Colonnade, Canary Wharf, London E14 5HS telephone number 0845 606 1234.
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