Here is a list of some of the main points:
No Liability to UK Tax on Pension Income
A non UK resident drawing a UK pension remains subject to UK tax on the income, unless he or she resides in a country with a double tax treaty with the UK that contains an article on pensions. If the member resides in a country with no double tax treaty with the UK, they may be subject to a higher tax rate than the top rate of tax in their country of residence. Transfer to a QROPS pension ensures that, if tax is due on pension income, it will only be taxable in the country of residence.
Ability to Leave Remaining QROPS Funds to Heirs
The standard UK pensions legislation significantly restricts the member’s ability to leave the pension fund to their heirs on death. If a member is drawing an income from an annuity. On death the value cannot be passed down, and would be lost. Unvested fund can be paid as a lump sum to heirs, less a tax charge equal to 35% of the lump sum. If the member dies after age 75 in ASP, then any lump sum paid to heirs is potentially liable to inheritance tax at 40%. Transferring your UK pension to a QROPS will allow you to leave lump sums without deduction of tax to heirs.
Currency
A standard UK pension will only pay in Sterling, which means the member runs an exchange rate risk in respect of pension income, in addition to incurring charges in order to convert the pension payments to the currency of their country of residence. A QROPS pension transfer means that the pension payments can be made in the local currency, thus eliminating exchange rate risk.
Investment Freedom
QROPS pensions give access to investment links that are currently not available to a UK registered scheme. Allowing for potentially greater investment returns.
Note: Please be aware this is not an offer or solicitation for brokerage service, investment advisory services, or other product or services in any jurisdiction where we are not authorized to conduct investment business or where such offer or solicitation would be contrary to the securities or local laws and regulations of that jurisdiction.