Lifetime Allowance and QROPS - Planning Opportunities with UK Residents

QROPS transfers are not exclusive to expatriate clients. In fact, the transfer of a UK pension to a QROPS can be an excellent pensions planning opportunity for High Net Worth UK resident clients:

LTA PLANNING: With the UK Lifetime Allowance (LTA) now set at £1m, QROPS now offers a fantastic LTA planning opportunity and can help mitigate, or even eliminate charges associated with exceeding the LTA.

CONTINUED FUNDING: Unlike other forms of LTA Protection, the option for further UK pension funding remains available where the full LTA is not used up on transfer to QROPS.

TAX-EFFICIENT RETIREMENT INCOME If a QROPS member retires in the UK then 10% of income received is deemed to be tax-free and only 90% of the foreign pension income is liable to UK income tax at the prevailing marginal rate.

DEATH BENEFITS: No tax charge will apply to lump sum death benefits where the member dies before age 75. Should death occur after age 75, the nominated beneficiary will pay tax at marginal rate on benefits received – with the same 10% tax-free advantage as above due. ITEPA 2003 s573-575 refers.

To understand these planning opportunity further please come along and find out how your clients could benefit.

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