UK Pensions - QROPS schemes

[lomuamart]

Whilst back in the UK recently I thought it might be an idea to try and track down the private pension I was paying into before coming over here. That past was successful but it dosn't kick in until I'm 60 - another 5.5 years. However, it's worth a lot more than I thought it would be.
So, I am wondering if anyone has actually transferred to one over here?
I don't fancy the taxman getting hold of some of it which will happen if left in the UK and I have read up a little on the subject. Legal and General, who hold the funds, are currently getting a transfer quote over to me but all these pension things are a tad complicated these days and I appreciate that all that glitters is etc etc. It would appear that Thailand dosn't tax overseas pensions income.
Any advice would be appreciated.

[Big Boy]

It would appear that Thailand dosn't tax overseas pensions income.

Isn't that because it's already been taxed at source? Surely, if transferred, it wouldn't have been taxed already, so liable to local taxes.

[lomuamart]

Yes, local taxes apply, but in most countries they're less than in the UK and in most of Asia they're zero as they don't tax overseas pension income. I've yet to find out if Thailand is included but from my research so far HK, Singapore and Malaysia are.
Whichever way it turns out, on the face of it, it would appear that the QROPS are ideal for those drawing UK pensions and living abroad.
There are criteria that have to be met to satisfy HMRC such as you must have lived outside of the UK continuously for 5 years (allowed back for 90 days in any one tax year) and the scheme you transfer to must be approved by HMRC.
The disadvantages seem to be that you may lose certain benefits on death with certain schemes - ie spouse's pension and others - so you need to take sound financial advice before transferring.
I've still got more research to do which is why I was wondering if anyone's done it yet. It's not a panacea but there are definite tax advantages but they must be offset against other potential drawbacks.

[lomuamart]

Sorry, should have made it plain that the fund is transferred. There will be a charge for that and I;m waiting on the figures but afterwards the mthly income could be tax free or certainly much lower than in the UK.

[Dannie Boy]

Yes, local taxes apply, but in most countries they're less than in the UK and in most of Asia they're zero as they don't tax overseas pension income. I've yet to find out if Thailand is included but from my research so far HK, Singapore and Malaysia are.
Whichever way it turns out, on the face of it, it would appear that the QROPS are ideal for those drawing UK pensions and living abroad.
There are criteria that have to be met to satisfy HMRC such as you must have lived outside of the UK continuously for 5 years (allowed back for 90 days in any one tax year) and the scheme you transfer to must be approved by HMRC.
The disadvantages seem to be that you may lose certain benefits on death with certain schemes - ie spouse's pension and others - so you need to take sound financial advice before transferring.
I've still got more research to do which is why I was wondering if anyone's done it yet. It's not a panacea but there are definite tax advantages but they must be offset against other potential drawbacks.

You are very right about doing plenty of research before making your decision lomuamart and it might depend on the type of pension you have. Mine is a final salary scheme which provides for a widows pension of 59% of my pension and with my wife being 16 years younger than me, then by the law of averages (women living longer than men), that could be a significant benefit to her and much greater than the 20% tax that I pay on the pension.

[lomuamart]

Yup. Mine's a final pension and my wife would get 50% less 2.5% for each year that she's more than 10 years younger than me (another 10% off as she's 14 years younger).

[blue05]

http://www.qropschoices.com/thailand/?b ... UAwQ#inner

this is advertised on bbc every day, may be of help

[Pagey]

Dannie , I am not advocating take out a QROPS, but when you die your wife still benefits, and if she dies so do your children, or so I have been told by a FA.

[Dannie Boy]

Dannie , I am not advocating take out a QROPS, but when you die your wife still benefits, and if she dies so do your children, or so I have been told by a FA.

Maybe I will do some further research - I was under the impression that the pension would cease when I die, but if that's not the case there could be some merit in it.

[Pagey]

Still pondering it myself Dannie, but I too have a good final salary scheme.

[Dannie Boy]

Still pondering it myself Dannie, but I too have a good final salary scheme.

Having paid into mine for 40 years I was reluctant to take a chance with it - better the devil you know and all that, although of course nowhere is safe these days but I am fairly confident my pension is safe!!

[Big Boy]

lomu, I've just been reading the previous thread viewtopic.php?f=9&t=18224 , and with your recent extended UK stay, the way I read it is that if you consider going back to the UK in the next 2 years and 10 months, you could be on shaky ground.

[lomuamart]

Yup.
Not at you, BB.
There's some rule somewhere that I've come across about knackering myself. 90 day - 6mth.
I don't know. If I've got to go, then I've got to go.
After all, it's only about the fact that one's parents may be on the way out, isn't it?
There's nothing else I can say.

[sargeant]

A very interesting topic/thread
My Brit Airways pension states each year what the widows benefit figure is about 60/65%

My wife is 32 years younger than me
The pension states she will be deducted 1.25% for each year she is more than 15 years younger than me 17 years = 21.25%
I am presuming that is from the widows/dependants figure ??????
i am not sure what her tax status would be or what her tax code would be ???????

I also wonder about her getting a state widows benefit lap of the gods i would think

[lomuamart]

More to the point, sarge. Are you tax efficient?