Warning QROPS advice in Spain.
Sun sea sangria, what more could one ask for. Maybe a little fair play? You need to read this if you value your UK pension.............
By: OIIA Limited
OIIA Limited undertake a great many QROPS transfers for clients living in Spain. However we are having an alarming number of people in Spain contact us regarding 100% cash withdrawal from a QROPS. So would like to take this opportunity to clarify:
1. We will not assist anyone to “Pension Bust”.
2. HMRC rules on this are quite clear. “70% of your transferred fund must be used to provide you with an income in retirement.
3. Any withdrawal of cash in excess of the above is regarded by HMRC as an unauthorised payment and is subject to tax at the rate of 40% plus a15% penalty surcharge. That means a tax bill of £55,000 on a £100,000 QROPS transfer.
4. After five tax year’s non UK residence, the pension provider has no obligation to report to HMRC on cash withdrawals from the fund. This is correct. This has allowed some advisers to suggest that clients can draw down the whole fund as cash after five years. However Singapore was struck off by HMRC as a jurisdiction allowing 100% commutation. Once struck off all holders of a QROPS in the jurisdiction became liable to an unauthorised payment charge of 55%.
5. HMRC is looking at New Zealand and Australia, as these jurisdictions are still being used to “Pension Bust”
Be warned HMRC are actively checking QROPS transfers undertaken purely to take 100% cash.
If you transfer to a QROPS to take 100% cash out. Expect to pay 55% tax at some time in the future.
Why take the risk. If you are offered a QROPS transfer on the basis that you can take all the cash out. (At a hefty cost given the advisers fee of 10%) You are likely to be talking to a photocopy salesman. Who will not know the difference between a Final salary scheme and a PHI contract. Unfortunately as there are so many Brits living in Spain you have attracted a great many so called financial advisors. ( What we call photocopy salesmen.) They are untrained and unqualified.
Ask your so called financial advisor for a TVA (Transfer Value analysis) If your adviser does not know what this is ask him to Google “QROPS TVA.”
If you live in Spain and want no obligation advice on a QROPS transfer from a UK qualified CII G60 adviser contact:
or visit the website: http://www.pension-
We are happy to give you a second opinion.
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Financial advisers to Expats.
Specialising in QROPS pension transfers and Personal Portfolio Bond Management.
QROPS advice given by Chartered Insurance Institute G60 qualified advisers.
Authorised Portfolio Manager to all Offshore Bond providers.