***BREAKING NEWS: From 6th April 2015, all UK pensions transferred into a Maltese QROPS will be allowed to withdraw 100% of the entire Pension pot, from just 55yrs old.***
In the past decade, 4,000,000 people left the UK for good, either for work or retirement. On moving abroad many of those expatriates will have left their UK pension arrangements in place.
These pensions remain under UK pension law and, as a result, pension income may be subject to UK income tax. Additionally, the UK investment restrictions relating to pensions would apply indefinitely and tax (up to 55%) may apply on death.
This is where a QROPS (Qualifying Recognized Overseas Pension Scheme) can be beneficial. A QROPS can offer considerably more flexibility, allowing a 100% lump sum withdrawal at 55 years old, greater income potential, immense tax benefits and much more investment freedom than a UK pension. Also within a QROPS, all funds paid out, whether a lump sum or a regular income, none are taxed at source, plus any of your un-spent pension can be passed to your beneficiaries free of UK inheritance Tax.