Trade body warns IFAs on QROPS
The Association of Independent Financial Advisers (AIFA) has this week warned its members to take care when recommending the use of Qualifying Recognised Overseas Pensions Schemes (QROPS).
The AIFA says in its latest newsletter “We would like to remind members who advise on pension transfers to QROPS to exercise caution when making such recommendations. It has come to our attention that UK residents with no intention of emigrating have been targeted by QROPS operating from the Channel Islands, Isle of Man and as far away as Hong Kong and Singapore with the assurance of having the full fund paid out as a lump sum at retirement. Should they go ahead and transfer funds, this could be considered an unauthorised payment and subject to a hefty tax charge. Furthermore, policyholders could be forced to repay the tax relief already received on their contributions.”
QROPS can be an extremely valuable means of maximising the value of UK pensions for those leaving its shores. However, as the AIFA warns, there can be huge pitfalls if they are mis-used. Montfort International plc, pioneers of UK pension transfers abroad for over a decade, were consulted by Her Majesty’s Revenue and Customs before the QROPS rules were finalised and remain leading experts in this specialist field.
Seeking advice from the qualified advisers at Montfort International (info@miplc.co.uk, call 01483 202072 or freephone 0800 018 3571) before finalising your migration plans can help you to a more comfortable retirement overseas without the risk of unwelcome financial shocks.
The AIFA says in its latest newsletter “We would like to remind members who advise on pension transfers to QROPS to exercise caution when making such recommendations. It has come to our attention that UK residents with no intention of emigrating have been targeted by QROPS operating from the Channel Islands, Isle of Man and as far away as Hong Kong and Singapore with the assurance of having the full fund paid out as a lump sum at retirement. Should they go ahead and transfer funds, this could be considered an unauthorised payment and subject to a hefty tax charge. Furthermore, policyholders could be forced to repay the tax relief already received on their contributions.”
QROPS can be an extremely valuable means of maximising the value of UK pensions for those leaving its shores. However, as the AIFA warns, there can be huge pitfalls if they are mis-used. Montfort International plc, pioneers of UK pension transfers abroad for over a decade, were consulted by Her Majesty’s Revenue and Customs before the QROPS rules were finalised and remain leading experts in this specialist field.
Seeking advice from the qualified advisers at Montfort International (info@miplc.co.uk, call 01483 202072 or freephone 0800 018 3571) before finalising your migration plans can help you to a more comfortable retirement overseas without the risk of unwelcome financial shocks.
Labels: QROPS, regulated advice, Retirement benefits
