QROPS, QNUPS, SIPPS, UK and European Pensions

The complexity of all UK and European pensions is extensive and will need specific investigation. Essentially there are thousands of structures across the EU and the vast majority can be transferred into offshore retirement structures for the purpose of family estate planning and asset protection.

The majority of EU pensions can be transferred to schemes in other EU states that hold a more beneficial tax position for the member. This takes careful planning and an in-depth understanding of the Double Taxation Agreements (DTA) between member states.

Claremont Wealth works with a number of international tax advisors to ensure that pension funds are only moved to truly beneficial jurisdictions with government backed investor protection.

For more information on UK and European pensions please contact us on pensions@claremontwealth.com

What is a QROPS?

A qualifying recognised overseas pension scheme (QROPS) is a pension scheme established outside the UK that is broadly similar to a UK registered pension scheme. When an individual transfers their UK pension savings to another registered pension scheme or to a QROPS the transfer can be made free of UK tax (where it does not exceed the lifetime allowance). (www.hmrc.gov.uk)

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What is a SIPP?

A SIPP is a type of personal pension scheme. The SIPP itself is a pension ‘wrapper’ that holds investments until retirement and the investor starts to draw a pension income. Most SIPPs allow investment in a range of assets including commercial property not just in an insurance backed fund provided by an insurer. SIPPs are designed for people who want to manage their own fund by dealing with, and switching, their investments when they choose. (www.hmrc.gov.uk).

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What is a QNUPS?

A QNUPS (Qualifying Non‑UK Pension Scheme) is pension trust structure, the assets held are in the legal ownership of the trust and not the member, but held for the member’s benefit. A QNUPS does not hold UK tax relieved funds (i.e. contributions are paid after tax), and therefore, there are no limits on the pension fund size, thus making it an ideal supplementary pension. The Trustee will distribute any residual value, normally directly to nominated beneficiaries of the late member, at the Trustee’s discretion and in accordance with the Plan rules.

Upon the member’s death, any residual value will normally fall outside of a member’s estate, and will be held by the Trustee.

The opportunities and benefits may vary depending on where the member and their subsequent beneficiaries are tax resident.

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