Several Advantages of a QROPS Transfer for British Expats Based Overseas

QROPS Pension Transfers are a great way for Brits living overseas to maximise their pension income. This topic discusses the many advantages of QROPS pensions and the choices available to expats who own a UK pension.

Thousands upon thousands of Britons are deserting the United Kingdom to live abroad.  As well as a a warmer weather, and much lower cost of living, a key potential benefit of living abroad is that UK expats can also maximise their retirement years from a pecuniary perspective by transporting their domestic pension into a QROPS fund.

 QROPS  is an acronym for Qualifying Recognised Overseas Pension Scheme, and these pension vehicle have existed since 2006. In short, these QROPS pension funds allow Britons to move their frozen UK pensions into QROPS schemes which offer a significant number of gains.

The first key attribute of a QROPS pension is that there no longer an obligation to invest in a badly performing annuity. Under UK pension rules,  there was a need to obtain an annuity.  Over the past few years, annuity returns have performed very badly, which resulted in the the monthly annuity payout was very low when one compares the situation with rates many years ago. In consequence, the standard of living for people who were forced to obtain an annuity, went down.

Another key  QROPS  advantage is that the remainder of any pension fundsleft over after the death of the pensioner can be given directly to the next of kin. Under British regulations,, the annuity part of the pension couldn't be bequeathed. This was very bad if the pensioner died soon after the annuity.

There is also a much enhanced level of investment flexibility within a  QROPS pension for NRIs to India.   Once the QROPS is established have a enhanced choice of how your assets can be invested.  As well as this, you can choice you risk appetite, so that if you want to take a bigger risk, then you can choose funds which has an additional level of risk.

An additional benefit of QROPS pensions which is often overlooked, is that you can drawdown the funds from the QROPS in the denomination of currency as you wish. This is a key plus for pensioners living in European countries, such as Spain, Cyprus and France, but who before had to rely on an income based in sterling – these people have witnessed their effective incomes reduce by over 10%, as the Euro has gone up against the pound. QROPS for Indian residents have become especially popular, as there are so many Britons living there, taking advantage of the clement weather.

Therefore, to conclude, you can see that there are many benefits of a QROPS pension. But, in order to ascertain whether a QROPS is suitable for you, it is essential to look for of professional QROPS advisers.

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.

A Beginner's Guide to Choosing a Newbuild Home

It's hard to argue with the benefits of buying a newly-built property; the prospect of quicker completion, a blank canvas for your decor, integrated eco-friendly features and attractive financing options is indeed extremely appealing. However, that doesn't mean you shouldn't take care when selecting your ideal newbuild. Read our guide to find out what to consider if you want to go down this route.

The Property

It's important to know exactly what you'll be getting when buying a newbuild, but this is sometimes not possible if you can only look round the show home or if you're buying off-plan (i.e. if the property/development doesn't actually exist yet). In the case of the former, see if the developer would be willing to let you see another of their builds that's similar to the one you want to buy, even if it's in another location entirely, just so you can get a good idea of what it's like. If you're in the latter situation, examine all floor plans and specifications carefully, bear in mind that any images will simply be mock-ups and may differ from reality, and check that your new home is as described when you actually come to move in. In both scenarios, be sure to take note of the interior dimensions of each room so you know whether your existing furniture (if you have any) will fit. One last point - it's easy to assume your new home will be absolutely perfect from the get-go, but defects can sometimes come to light after you move in. Choosing a property from a developer that offers warranties for this sort of thing (such as this one) can be hugely beneficial in limiting the disruption and expense this can cause.

The Site

If there are already residents living on the site, it's worth chatting them to see how they like it and to find out more about the area and developer. You should also take steps to check that the site is properly managed - it's worth finding out if the manager in question has a good reputation for sound supervision of the site. This is a given when buying any property, but it's also important to ensure the transport links and schools (if relevant) are adequate for your requirements. Some developers will offer information on this, but it's always good to conduct your own research.

The Developer

Buying from a trustworthy developer with a reputation for quality properties is a must. Do some research on the web and check whether they're a member of the National House-Building Council (NHBC), which sets standards that builders should adhere to and also regularly inspects the properties themselves. The NHBC also provides one of the warranty schemes mentioned in the last section - the Buildmark initiative. This make the builder responsible for correcting certain defects that are identified in the first two years of your ownership, and also includes insurance for rectifying some types of damage in the following eight years.

Financing Your Purchase

If you're a first-time buyer or simply don't have much of a deposit to put down, the good news is that there are several financing options attached to newbuilds to make it easier for purchasers to acquire their new home. These include the government-backed NewBuy scheme, which only requires a five per cent deposit, and shared equity initiatives. Existing homeowners can also take advantage of a home exchange service to speed up the process of selling one property and buying another. You can sometimes negotiate with the developer to include certain things in the price, too, such as flooring and fences. While this isn't guaranteed to always have a positive result, it's worth speaking to the builder in case they're willing to bend a little.