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QROPS
QROPS FAQ
QROPS FAQ'S
Frequently Asked QROPS Questions & Answers
1. Is there a minimum?
2. What are the costs associated with a QROPS?
3. My pension fund is of substantial value. Are there any tax issues?
4. How long does the QROPS process take?
5. Can I transfer benefits that are in payment to a QROPS?
6. Am I able to transfer protected rights funds into a QROPS?
7. Can I transfer the assets without first liquidating them into cash?
1. Is there a minimum?
There is no minimum although normally at least £100,000 is needed to make QROPS cost effective due to charges imposed by most QROPS providers. However, if your pension fund is less than £100,000 there are also several UK pension options that may be suitable for you.
2. What are the costs associated with a QROPS?
This is dependent upon the amount of your pension funds and the QROPS scheme that is right for you. Normally the larger your pension fund is, the cheaper the charges are. We will always disclose all fees that are involved with any pension scheme during the consultation process so you can make a fully informed decision.
3. My pension fund is of substantial value. Are there any tax issues?
A transfer to a QROPS will be a Benefit Crystallization Event. This may give rise to a tax charge if the amount transferred exceeds the individual's unused lifetime allowance (Currently £1,800,000). As part of the advice process we will inform you of any tax issues that may be involved but it is very dependent upon a clients individual circumstances.
There is the ability to register for Enhanced Protection via HMRC which may negate some/all of the tax issues.
4. How long does the QROPS process take?
The process can take anywhere from 4-10 weeks.
5. Can I transfer benefits that are in payment to a QROPS?
In most circumstances the answer is yes, however, depending upon the scheme rules the UK pension has in place it may not always be possible. Annuities that are already in payment and some payments from occupational final salary schemes may not be transferred.
6. Am I able to transfer protected rights funds into a QROPS?
You can transfer in protected rights. We will discuss this with you in more detail as it is not always the best option.
7. Can I transfer the assets without first liquidating them into cash?
This depends on how the assets are currently held. In most cases the answer is yes, although often it is far easier to liquidate the assets into cash before moving them across to the new scheme.
