Positive and negative aspects of QROPS
The full form of QROPS is Qualifying Recognised Overseas Pension Scheme. Before applying for QROPS the first thing which comes to our mind is the advantages and disadvantages factors related with it.
The most positive aspect of QROPS is the benefit on tax. It offers the exemption from UK income tax and inheritance tax. It gives a choice on which jurisdiction you want to keep your pension in given that your QROPS based anywhere.
It offers a separate advantage to British expats against keeping your pension in UK.
You can make profitable offshore investment as an overseas investor if you go for QROPS pension.
You can also find a flexible pension solution with your current arrangements as QROPS investor.
The negative aspect of QROPS is that the rules and regulations that HMRC stated down on foreign pensions keep on changing from time to time. So you have to me sure that your advisor is updating you with the changes.
Another disadvantage you can say is that the investors in QROPS must stay as a resident outside UK for at least 5 complete financial years following the transfer. If you fail to follow this rule you have to pay a large tax amount.
