What Happens to your QROPS if you Move Back to the UK?
When making the decision to relocate or retire overseas many think that it will be for good, but expat life can be unpredictable and the reality of living overseas may not live up to the expectation for some or career or personal circumstances may change leading to expats deciding to move back to the UK.
If you have moved overseas and are thinking of moving back to the UK, you may be left wondering what happens to your QROPS and whether you can transfer your QROPS back to a UK pension scheme.
As an international financial advisory and pension transfer specialist, our experienced team of advisors at Prism Xpat can support and guide you through all aspects of transferring into and out of QROPS to ensure you have the most appropriate and effective strategies in place.
QROPS can be left in situ in the overseas country you have been living and where they were originally set up as UK authorities considered this when setting out the framework for QROPS transfers. If left where they are QROPS would be taxed on a similar basis to a UK pension when drawn.
However, leaving a QROPS in place may not be the most effective solution and transferring your QROPS to a UK based or other solution may be more beneficial.
Transferring your QROPS in the UK
Solutions for transferring your QROPS back to the UK include use of a Self Invested Personal Pension (SIPP). The solutions available would apply for expats returning to the UK who planned to continue working and making tax relievable pension contributions as a UK resident.
A SIPP may also offer cost efficiencies over a QROPS, as a QROPS typically has higher running costs than a SIPP. However complexities on the transfer may arise, so it important to seek professional advice.
If you are thinking of moving back to the UK and are looking for independent advice on QROPS in the UK, our specialist team can advise you on your options and provide a formal recommendation on your optimal course of action. Get in touch to discuss transferring QROPS into the UK.