QROPS list is a list of QROPS pension schemes which you can use for transferring your pension. One interesting fact here is however that even the presence on the list doesn’t guarantee confirmation of verification by the HMRC.
HMRC clearly mentions that in case the scheme had been wrongly mentioned in the list, the amendments can be made later also and severe penalties can be imposed because of the wrong choice made. Most of the financial advisers recommend various products and are more focused towards finding the right products. This has led to many penalties in the past.
Many times the product might seem lucrative and a good option, this doesn’t mean they will surely attain approval. If you opt for QROPS appearing on the QROPS list, not approved by HMRC you can face tax penalties more than 55%. The approved QROPS are those which are within the rules and regulations of HMRC as well as the local pension rules. As a result it is true that good research work and comprehensive study in the situation is necessary.
Following are the advantages of a good qualifying recognized overseas pension scheme:
· You can control considerable tax reductions in your pension and you are able to consolidate your pensions into one qualifying recognized overseas pension scheme.
· You are able to pass the pension funds to the beneficiaries and thus are exempted from UK Inheritance Tax.
You have pension trustees as well as scheme provider closer; you do not have to purchase an annuity within qualifying recognized overseas pension scheme.
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