Privacy guaranteed. We will not share your information.





Sovereign QROPS > Scheme


Comparison of Malta and Gibraltar QROPS


Comparison of existing Sovereign Qualifying Recognised Overseas Pension Schemes

Scheme:

Calpe Retirement Benefit Scheme

Calpe Lite Retirement Benefit Scheme

Centaurus Retirement Benefit Scheme

Jurisdiction

Gibraltar

Gibraltar

Malta

Initial Set Up Fees

£750*option A
£850*option B

£300

€800* option A
€1000* option B

Annual Fees

£900* option A
£1000* option B

£500

€1100* option A
€1300* option B

Investment House **

Option A – RSK/RL 360°
Option B – Open

RSK/RL 360°

Option A – RSK/RL 360°
Option B – Open

PCLS/CD Maximum

25-30%

25-30%

25-30%

PCLS/CD Min. Age

55

55

50

Max. age Benefits must be taken

75

75

70

Withholding Tax

2.5% Capped Drawdown only

2.5% Capped Drawdown only

Dependent on whether a DTA is held with the members country of residence

Min/Max Investment

Over £100,000

£25,000 – £100,000

Over £100,000

Trustees

Sovereign Trust International Limited

Sovereign Trust International Limited

Sovereign Pension Services Limited

Termination Fee

£1,500 or free if to another Sovereign scheme

£500 or free if to another Sovereign scheme

€1,500 or free if to another Sovereign scheme

HMRC No.

504402

504488

504380

Trust Deed Date

30 July 2012

7 September 2012

02 July 2012

Bank A/C Date

30 August 2012

02 November 2012

31 August 2012

I should be pleased to talk to you about any of these schemes; simply Contact Me with more details.

 


The Sovereign QROPS


What are QROPS?

On moving abroad many British expatriates will have left their UK pension arrangements in place. These pensions remain subject to UK pensions law. As a result, the pension income may be subject to UK income tax (20% deducted at source). Additionally, the UK investment restrictions relating to pensions would apply indefinitely and the member payment charges (up to 55%) may apply on death.

Under UK legislation introduced in 2004, effective from April 2006, expatriates or UK residents who have a demonstrable intention to move overseas may transfer the value of their UK pension rights to a non–UK pension scheme and thus potentially avoid most of the normal restrictions imposed on the pension fund if it remained in the UK. The transfer must be made to a Qualifying Recognised Overseas Pension Scheme (QROPS) that is recognised by HM Revenue & Customs (HMRC).

Do I qualify?

Whilst cases should be examined on an individual basis there are a number of basic conditions that must be fulfilled in order to transfer to a QROPS.

To gain the maximum benefits from a QROPS arrangement, the member must become non-UK tax resident and remain so for at least 5 full complete and consecutive UK tax years.

The existing UK pension scheme can be in drawdown (i.e. benefit being paid from the fund directly – an approach now referred to as “Capped Drawdown”) before transferring to a QROPS. However, there are restrictions and if the permitted Pension Commencement Lump Sum (PCLS) has been taken, no further PCLS is allowed.

UK rules impose a statutory Lifetime Allowance (‘LTA’) relating to the amount payable from UK registered pension schemes that will be treated as tax-privileged. Transferring benefits to a QROPS is known as a Benefit Crystallization Event (‘BCE’) and the value of pension rights transferred in excess of the lifetime LTA will be subject to UK tax.

Any questions? Just Contact Me and I shall try to help you.

Back to Up