QROPS Specialists now offer the new Isle of Man 50c QROPS which allows UK expats who are looking to live or retire abroad maximize their pension income and avoid UK taxes on their existing pensions.
Online PR News – 09-October-2011 – – Following the introduction of new pensions law by Tynwald (the Isle of Man’s parliament) effective 22 October 2010, consulting actuary Boal & Co today announced the launch of “Trinity”, the very first Qualifying Recognized Overseas Pension Scheme (QROPS) to be approved under the new legislation (s50C of the Isle of Man Income Tax Act 1970).
Pension schemes approved under 50C now pay benefits: pension, lump sum and death benefits without deduction of any tax. This is very different to the previous position for other Isle of Man QROPS ( http://www.qropsspecialists.com ). The retirement lump sum entitlement, moreover, places 50C schemes ahead of Guernsey (and most other) QROPS from a tax perspective.
At least 70% of any UK transfer values paid across into Trinity have to be used to provide a pension for life and must commence no earlier than age 55. However, the excess of the pension fund over and above this amount can be used to provide an additional retirement lump sum. All of the investment growth achieved within Trinity can, at retirement, be paid as a lump sum (as this is fully permitted by HMRC rules). So, expatriate clients who retire abroad (outside of the UK) can receive a lump sum equal to 100% of fund value less 70% of the initial transfer value. In some cases, this can be as high as 75% or 80% of the fund value at retirement. For this reason alone, transfers already made to QROPS established in other jurisdictions should now be revisited by advisers as Trinity will generally be able to offer much greater benefits than their current QROPS arrangement.
This means UK expats or those considering moving abroad can get access to a larger part of their pension as a lump sum. This is particularly useful for those who may wish to buy property in the future as QROPS themselves do not allow you to buy residential property. But, under the 50c rules, you could take a lump sum, which would then fall outside of a QROPS and thus enable you to buy property with your cash. This is particularly useful for those British expats paying higher rate tax and looking to buy property abroad with their pensions.
QROPS Specialists has access to the Trinity QROPS and can now set up a QROPS pension ( http://www.qropsspecialists.com ) transfer for UK expats considering moving or retiring abroad.
QROPS Specialists help UK expats to avoid the Inland Revenue legitimately through QROPS Pension Transfers. Richard Malpass, the QROPS department specialist is originally from the UK, but has been offshore for 14 years.
For more detailed information on Isle of Man 50c QROPS, see http://www.qropsspecialists.com/qrops-isle-of-man-50c-tax-changes/
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