Savings, pensions, tax advice and asset management for Expatriates

Retirement planning with pensions, savings and trusts

Expatriate pensions

A Recognised Overseas Pension Scheme (ROPS), is a pension scheme created for expatriates by HM Revenue and Customs (HMRC).

ROPS is designed for expatriates who wish to transfer their UK pension to another jurisdiction without incurring charges and penalties. When, for example, they leave the UK to live abroad, or when a person born abroad has built up benefits in a UK pension scheme and decides to return to their home country to retire there.

Why switch your UK pension to a ROPS?

ROPS offers expatriates significant benefits over conventional UK schemes. Typically:

  • 30% lump sum available on retirement
  • Retirement from age of 50
  • Flexible income drawdown rules
  • No obligation to ever buy an annuity
  • Avoiding the 55% UK death tax
  • Consolidate pensions into one easy to manage fund
  • Greater investment flexibility
  • Currency of your choice
  • Transparent charges
  • Avoid further changes to UK tax and pensions legislation

ROPS does not have to be established in the new country of residence which offers greater choice and flexibility. The most appropriate choice of QROPS depends on the personal circumstances of the client. Marrying the client to the best scheme for their present and future requirements is where we come in.

Savings - The benefits of a savings plan

Savings plans work alongside pensions to offer you more flexibility in your retirement planning. Firstly, beyond the initial allocation period, you can make withdrawals from your savings plan at any time. Secondly, they don’t require an annuity when they mature. Thirdly, your beneficiaries avoid a 55% death tax charge.

Trusts and estate planning

Trusts are the key vehicle for gifting money to relatives or others in order to remove it from an individual’s estate. They provide you with greater control over how the money should be invested and the timing at which any beneficiaries receive either income or capital.

They enable any subsequent growth from the date of gift to accumulate outside of your estate and ultimately, the settled amount will normally fall out of the estate after seven years have expired from the date of the original gift.

Upon your death, the UK Government assesses the value of your estate (including cash, investments, property or businesses you own) then deducts tax. If this exceeds the inheritance tax threshold (currently £325,000 for a single domiciled person) the estate will be subject to inheritance tax of 40 per cent.

Planning for this eventuality can deliver one of the most significant single money savings you are likely to achieve. Sadly many people ignore this sensitive matter.