Qualifying Recognised Overseas Pension Schemes

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| Qualifying Recognised Overseas Pension Schemes

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Introduction.............................................................................................2
Are you a British Citizen already living abroad or planning
on moving overseas?
About QROPS?.........................................................................................3
The major advantages of transferring your pension into a QROPS
QROPS Considerations
Benefits with QROPS
Benefits of QROPS vs. UK-based Pension Scheme...........................4
Why use Austen Morris Associates?....................................................5
QROPS Transfer Procedure in 8 steps
Our Global Reach....................................................................................6
| Are you a British Citizen already living abroad or planning on moving overseas?
AMA QROPS | Contents
| Introduction
More than 140,000 UK citizens leave the country
every year for a new life overseas, according to
The Telegraph. Whether you are a young executive
or a high net worth individual with a diversified
portfolio of global investments, you probably have
specific financial objectives. International investors
living abroad are now enjoying the flexibility, amongst
other benefits, of investing their money overseas.
Due to increased demand, the overseas financial
industry has become more robust. Investing money
overseas is now easier, offering investors more
flexibility and greater rewards than ever before.
There is a broad range of products catering to the
requirements of those who are accumulating wealth
or consolidating savings, those accessing or spending
their wealth and those who want to pass on their prosperity
to their children.
With over 20 years of experience, Austen Morris Associates
has developed strong partnerships with many of world’s
leading investment houses, and is able to offer a variety
of the most competitive products in the marketplace.
In this informative guide, our aim is to provide essential
information for effective retirement planning as an
international investor. To help plan your retirement using
a QROPS and to ensure that it is the right choice for you,
one of our experienced financial consultants will personally
discuss all the available options regarding your particular
circumstance. We want to ensure that you fully comprehend
all the details and are statisfied with your decision.

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| Greater investment freedom with the flexibility of investing in a much wider range of
funds and investments.
| Use of onshore / offshore funds, highest fixed deposit rates and total diversification
| Tax efficiency
| Tax planning opportunities
| No requirement to purchase an annuity
| Receive income and benefits in currency of your choice
| Take income from your pension in a much more tax efficient way
| Withdraw up to 30% of the fund in a lump sum
| The ability to pass on pension funds to your beneficiaries upon your death free of UK tax
For British citizens living internationally,
QROPS are becoming increasingly popular,
due to the many tax advantages they
offer in comparison to UK pension funds.
This trend is occurring because pension
funds that remain in the UK are heavily
taxed, in some cases up to 45%.
Transfer your existing UK pension into a
QROPS, and if planned correctly, the financial
benefits can be immense. This option can
help you avoid UK taxation, enhance your
investment growth, flexibility and the
future financial stability of your pension
for you and your family.
Most UK pensions are not managed on
a case by case level. Therefore, being in
control of your own pension is of immense
benefit to those living abroad. You can
benefit from being able to invest in a
more diversified range of asset classes.
Furthermore, similarly to the UK, you are
no longer obliged to purchase an annuity.
There are rewards to be earned in Inheri-
tance Tax Planning (IHT). Despite the UK
Government abolishing the 55% death tax
on UK pensions, they have implemented
a Inheritence Tax on UK pension schemes
that may amount to you and your family
losing 45% of your pension should you pass
away after age 75. In addition, under certain
conditions this taxation will also apply
should you die prior to 75 years of age.
The rules for QROPS are similar to those
for a UK pension, but most importantly
they have fewer restrictions. These rules
allow that upon an individual’s death, the
value of your pension can be passed onto
your beloved ones without major taxation
penalties. Moreover, QROPS’ arrangements
usually ensure that legacies will be passed
to your intended beneficiaries effortlessly
and swiftly rather than if your investment
was still based in the UK.
In 2006, Her Majesty’s Revenue and Custom
(HMRC) changed the regulations regarding
pensions to retirees overseas. Pension holders
are now qualified to transfer their UK pension
to another country when they retire or relocate
to a different international jurisdiction.
For a QROPS scheme to qualify, it must be
legally recognized by HMRC and must meet
the following criteria:
• It must be recognized by HMRC for tax
purposes, ie. it must be open to residents
of the country where it is based and there
should be stable taxation laws in place.
• The maximum lump sum should not
exceed 30%, as 70% should be left to
provide an income for life.
• To withdraw your income you must at
least be 55 years of age.
If you choose to relocate your pension into
a QROPS fund in another nation, it will be
important to work with a specialist who will
face all the political, economic and currency
risks that could degrade your return on
investment (ROI) in the future. You will
also have to balance the value of a QROPS
against the declining solvency of most UK
final salary schemes and review the potential
UK taxation, versus the taxation benefits
of your QROPS jurisdiction. Before making
this important financial decision, please note
that every individual has a unique financial
situation; with any inquiry be sure to contact
an Austen Morris Associates Consultant for
specific personal advice.
Transferring your pension into
a QROPS adds flexibility and
opportunities during retirement.
It also helps you avoid large tax
penalties and hidden costs when
accessing your money. With QROPS,
you will be able to receive a lump
sum of up to 30% together with the
possibility, after 5 years of living
overseas, to pass on your pension
fund at death to your beneficiaries
free of UK taxation.
| About QROPS
| QROPS Considerations:
| Benefits with QROPS
| The major advantages of transferring your pension into a
QROPS include:

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| QROPS | UK-based Pension Scheme
QROPS are designed for a more transient population and
international advisers are more familiar with them.
UK-based pension schemes are designed for residents of the UK, so if you are based
overseas it can be very challenging to consult UK pension expertise.
You may invest in assets in most currencies, and choose to receive payments in
your local currency, allowing the privilege you to eliminate multi-currency risk.
Most investments are held in sterling, so payments are affected by exchange rate
fluctuations and subject to currency conversion charges.
Most schemes allow the same flexibility as in the UK, but local rates may differ.
With QROPS you get the benefit of being able to “crystalise” on your pension.
You may access your retirement at any age starting from 55 years old and above.
Generally in the UK drawdown occurs between 60-65 years of age, though this
is now increasing, particularly with some of the major company defined benefit
schemes. There is a prediction that scheme access will rise
to 72 years of age by 2018.
You can withdraw up to 30% tax free, depending on local legislation. Most UK schemes allow you to withdraw a lump sum of up to 25%.
Like UK based schemes, there are no requirements to provide income via
an annuity, so funds may remain invested and income levels are also flexible.
This is subject to certain maximum levels, which may be more generous
than UK based schemes.
It is no longer compulsory to purchase an annuity at any age in the UK. Therefore,
your pension funds may remain invested indefinitely and realigned
to suit your investment requirements. Income can be taken directly from
the invested funds, (income drawdown) but subject to limits.
The existence of a double taxation agreement between the jurisdiction of the
QROPS provider and your country of residence is a vital factor when considering
the income tax implications. This will ensure you are not taxed twice.
Your pension income will be taxed in the UK, and claiming this back may be
challenging, if not impossible. However, it is possible to arrange payments to
be made gross and pay tax in your country of residence.
A QROPS can offer a wider choice of investments,
including shares, mutual funds and packaged investment products.
The investments are available in multi-currencies.
Can offer a wide choice of investments, including shares, mutual funds and
packaged investment products. However, the investments will predominantly
be denominated in GBP Sterling which means more currency risk.
A QROPS can provide a simple and effective way
to consolidate your pension arrangements.
Holding a variety of UK pension schemes means your funds can be
subject to numerous complex charging structures, so it is harder to tell
whether you are getting value for your money.
Any lump sum death benefits payable after 5 consecutive years
of non-UK residency will not get surcharged by any taxes,
regardless of whether benefits have been crystallised or your age.
There is the possibility that any lump sum benefit paid in the event of your death
will be subject to a tax charge of 45%. This will depend upon whether you have
crystallised your benefits, the method you have used to provide your income and
your age at date of death. This charge has nothing to do with inheritance tax
charges, which are an entirely separate calculation.
Not usually liable to UK taxes.
Contrary to a lot of QROPS related information publically available,
for inheritance tax purposes the value of most UK pension arrangements will not
be included in your estate. Some very antiquated arrangements may be included
however, (Section 32 Buy Out Plans, Retirement Annuity Contracts),
so it is important to understand whether this applies to you.
| Benefits of a QROPS vs. UK-based Pension Scheme

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Each QROPS jurisdiction offers a wide range
of solutions and alternatives, depending on
your current situation, including your residency.
It is crucial to comprehend which jurisdiction
is best suited to your requirements. If you
hold an existing QROPS policy or planning
on transferring your existing UK pensions to
a QROPS, we strongly recommend you to speak
to an Austen Morris Associates consultant
who can compare QROPS with your pension
to determine the best possible advice, given
the nature of the ever changing market.
| QROPS Transfer Procedure in 8 steps
1. Client QROPS inquiry is sent to Austen Morris Associates.
4. Client sends signed LOA back to Austen Morris Associates by email or fax with original to follow via the mail.
2. Austen Morris Associates consultant contacts the scheme owner, and depending on the geographical terrain, he meets with
the client either directly or remotely.
5. Austen Morris Associates contacts existing UK pension(s) provider(s), and verifies that position(s) can be transferred to
QROPS and ascertain transfer value or any other additional benefits.
3. Then the consultant sends a Letter of Authority (LOA) to the client for them to sign.
6. A report is produced by Austen Morris Consultant. Following up, another meeting is then scheduled with the client,
in order for the client to understand the implications and to make a decision on whether he would like to transfer
the pension to an overseas jurisdiction.
7. If the client is happy with the opportunity to move to QROPS:
1. The signed and completed paperwork is sent to the existing provider.
2. The application transfer form is sent to QROPS Plan Trustees to action transfer of UK pension plan(s) assets
to a QROPS Offshore Structure.
8. Pension not based overseas:
1. An appropriate investment structure is implemented by the Austen Morris Associates Consultant.
2. Regular quarterly reviews of the pension performance is provided by the Austen Morris Consultant.
a. It can take 4 - 8 weeks for the existing scheme providers to supply the information required at step 4.
b. If client consents to proceed at step 5, resume at step 6.
c. Step 6 can take 4 - 5 weeks for the transaction to be completed.
d. This whole process can take up to 3 months to be terminated.
* Please Note:
| Why use Austen Morris Associates?

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After you have read the Education Fee Planning guide, please contact us
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