New QROPS Rules 2012

New QROPS Developments

By setting up a QROPS (Qualifying Recognised Overseas Pension Scheme), it is now possible to have access to your UK pension, whereas previously, prior to 2006, it has not possible to access the benefits - ie it was 'frozen'. The benefits are sometimes immediate - depending on the jurisdiction, you can get instant access to the funds, as well as numerous other potential benefits.

The preceding couple of months has seen various developments in the QROPS landscape, with many QROPS schemes having been removed out from the HMRC List, and with other jurisdictions looking to take their place. One example of the drastic changes made in the recent rule changes was the effective removal of all Guernsey QROPS from the approved HMRC list.

Perhaps one surprise reesult from all the changes, is that Malta has emerged as a leading QROPS jurisdiction.

The Emergence of Malta QROPS

Malta has a full EU membership, and this strengthens it's positions as a valid and robust QROPS jurisdiction.
With legislation based on the UK model, companies who wish to administer retirement schemes have to be registered in terms of the Special Funds (Regulation) Act, making Malta’s QROPS provision amongst the best-regulated in the world.

While other QROPS jurisdictions  schemes then had to answer questions from HMRC, Malta negotiated and talked to HMRC throughout the process. This gives us the belief in recommending a Malta QROPS as a leading jurisdiction.

Although there are fully regulated pension industries in a number of countries outside of the EU, as well as mature international pensions industries in the British Protectorates, we suspect these jurisdictions from a QROPS perspective to present potentially a higher level of risk for advisers, service providers and customers when compared to a QROPS established in the EU - particularly QROPS in Malta.

You need to factor in a variety of issues and factors when deciding the best places to locate your QROPS.
 These criteria include:

• A well developed international tax treaty network.

•  Secure legislative platform.

•  Licensed domestic pension environment including the requirement for all QROPS in the jurisdiction to be audited.
• Low tax environment to ensure a favourable QROPS structure and benefits for drawing down a pension

Following a detailed analysis of the available options, Malta satisfied all of the above QROPS conditions and had the overall protection . of being based in an EU Member State. Accordingly Malta is becoming the recommended jurisdiction for the QROPS.

Extensive Tax Treaty Network

One of the most significant attributes that Malta carries is that it has an substantial tax treaty network. Malta currently has 57 tax treaties including India QROPS,  that are able to, in many instances, confer particular benefits to plan members when compared to the UK tax treaty network that applies to UK registered pension schemes.

The tax treaty with the US is a prime example where the existence of a treaty has enabled pension holders in the US to be able to set up a QROPS and benefit from tax relief on their pension within the US.

Gibraltar is also looking to benefit from the demise of Guernsey as a QROPS jurisdiction. Thus the emergence of Gibraltar QROPS will put further pressure on the other QROPS jurisdictions.


Thus, to conclude, it can be noted that the QROPS landscape is rapidly changing, with the HMRC rigorously clamping down on what it perceives are abuses of the system. If you require further information about QROPS, or are thinking about a QROPS transfer, then please go to http://nri-invest.in, who are the leaders in independent QROPS advice.

What Items Can I Use to Secure a Loan Against?

In the current economic climate, we're all feeling the pinch. Unfortunately, this situation means banks aren't prepared to lend as readily, which has led me to investigate different items that can be used to obtain short-term personal asset loans. Companies offering this service provide a viable alternative to a traditional pawnbroker, allowing people to access finance that is secured against valuable possessions. There is a lot less hassle involved in this process than with regular loans and because the money is secured against the items, rather than your credit history, these firms offer far better interest rates and terms than payday lenders. One option is to consider is a UK pension transfer to a QROPS, but this is not such a wise idea, as a pension should be thought of as a long term investment, to provide you with an income in retirement, so other means must be considered.

Antiques and fine art

When I was exploring this possibility, I found it difficult to find out if anything I own would qualify to be used in this manner. Some of the accepted items are more obvious than others, but there may well be some possessions gathering dust at home that you're completely unaware could release much-needed funds, without the need to part with them for good. If you've got a Monet or a Van Gogh sitting on your wall, the likelihood is you'll know it's worth a considerable sum. But what about that watercolour hidden away in the attic? If you're looking to use it as loan security, the lender will usually bring in an expert to provide an independent view of the item's worth. They'll be looking at the condition of the piece and the signature, before assessing the artists' current popularity and the rarity of the piece. Considering these factors together will allow them to produce an accurate valuation. The same basic principles exist if it's an antique you're looking to have appraised and its worth remembering that the value of certain items can go down depending on their popularity at the time. Taking this into consideration, loans are a better option if you need to realise the cash quickly, but want to retain the valuable in the future to sell when its value has increased again.

Unlikely valuables

It's lovely to be able to possess a luxury watch, but there is no point wearing one to meetings with a bank manager who refuses to lend when you really need a loan. If the timepiece is in good condition - without scratches or dents - and you have the original box and papers, why not consider using it as security for a short-term loan? Unlike with most other valuables, newer watches are likely to be more valuable than older items. Another unlikely item that can be used to secure a personal asset loan is fine wine. Again, the condition is of utmost importance, with the labels arguably as key to the value as ensuring the bottles are not damaged. If they are in their original casing, this will further increase the value. Wine experts will also test the Ullage level of the bottles. This is the gap between the top of the casing or cork and the level of the wine. Although it is something I'd never heard of, it can have a large impact on value. Finally, have you thought about using your car to secure a loan? If it is a prestige model or a classic vehicle with a trade value of more than £15,000, it is likely you will be able to use it for this purpose. Once again, its worth when it comes to finance is largely dependent on the condition, as dents, scratches and any damage to the interiors will all detract from the total. You will need to be able to provide V5 documentation as proof of ownership, while the auction records of classic cars will also be considered.