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Qualifying Recognised Overseas Pension Scheme (QROPS)

A Qualifying Recognised Overseas Pension Scheme (QROPS) is an innovative and flexible pension scheme for people who have worked in the UK but are now expatriate, intend to move abroad permanently or have plans to retire overseas. QROPS were introduced by Her Majesty’s Revenue & Customs (HMRC) in 2006 and offer people who have worked in the UK the opportunity to transfer their accrued pension benefits to another regime recognised by HMRC. 

The Ardel Personal Pension Plan

Ardel Trust Company (Guernsey) Limited is registered with HMRC as a QROPS provider and administers a Guernsey pension scheme which has been approved by HMRC, known as ‘The Ardel Personal Pension Plan’.  This scheme is administered in accordance with the laws of the Island of Guernsey and is open to both residents and non residents of Guernsey.

The trustees would be willing to accept minimum pension transfers of £250,000 into the scheme and invites members to join the scheme who are either looking to retire, work or live abroad or who are already non UK resident.

Benefits

  • There is no requirement to purchase an insurance annuity by the age of 75.
  • Capital gains and income can be rolled up tax free in Guernsey, thereby maximising the potential pension available on retirement.
  • Flexibility of investments.
  • Once an individual has been classified as non resident in the UK for five full tax years the reporting requirement to HMRC will cease.
  • There is flexibility in terms of the timing of taking benefits from a QROPS between the ages of 50 and 75 (until 2010 at which point it will rise to age 55).
  • Preservation of wealth. As there is no requirement to purchase an insurance annuity, pension proceeds can be fully distributed to beneficiaries following death rather than be forfeit as in the case of an insurance annuity.
  • Members can approach the trustees for loans from their trust fund within the scheme, although such loans would be on a secured and commercial basis and must be repaid prior to the payment of pension benefits.
  • There may be potential inheritance tax planning opportunities on transfers to a QROPS.  QROPS assets may potentially fall outside the member’s estate for inheritance tax purposes in the country in which the scheme member is then resident.

Summary

The Ardel Personal Pension Plan is an excellent vehicle for people who are considering leaving the UK or already non‑residents. The solution provides individuals with flexibility in their retirement, tax efficiency, and a choice of investment management, all safe in the knowledge that upon death all pension proceeds will be distributed to their beneficiaries.