QROPS Schemes In India

There are totally five Insurance Companies listed their respective pension schemes in HMRC’s QROPS list.  Currently, there are about thirteen pension schemes have been listed as QROPS  in HMRC site across all the five different insurance companies in India.  One must note that,  it does not mean that all the listed schemes are meeting the requirements of HMRC.

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Broadly Pension schemes in India can be categorized as follows:

Ø  Capital Guaranteed scheme

Ø  Unit Linked pension schemes

Ø  Traditional pension plans

Ø  Immediate Annuity Schemes

Ø  Defined Benefit Scheme

Ø  Single Premium schemes etc.,

It is difficult to say which the best pension scheme is as requirements of different clients are different & their preference  to the scheme feature is unique to their Individual requirements over others. There are many factors that need to be figured out while deciding upon the most suitable QROPS for a particular client. So we believe in personal consultation of the client before choosing right QROPS that meets their requirements & also we believe in giving complete comparisons of all the  available QROPS in India.  So that our client’s can choose the right QROPS to get their UK pensions transferred.

More Importantly,  now  it is important to know the HMRC regulations over QROPS before choosing the pension scheme from HMRC list to get your UK pensions transferred. The requirements to be a recognized Overseas Pension Scheme (ROPS) changed from 6th April2017. One need to check that the scheme you are transferring to on or after that date meets the new requirements .HMRC clearly states that it cannot guarantee the listed schemes as ROPS or that any transfers to them will be free from UK tax.

It is your responsibility to find out if you have to pay tax on any transfer of UK pension savings. HMRC will usually pursue any UK tax charges arising from transfers to overseas entities that do not meet the ROPS requirements even when they appear on the HMRC QROPS list.  Choosing the Overseas Pension scheme including pension scheme that is not meeting the revised HMRC conditions will attract UK tax of 55%  plus penalty that can go upto 82%.

Following has been the Disclaimer BY HMRC:

“Publication on the list should not be seen as confirmation by HMRC that it has verified all of the information supplied by the scheme in its notification. The purpose of the list is merely to help UK registered pension schemes carry out their due diligence when transferring pension savings to another pension scheme that is not a registered pension scheme. The list is not to be taken as a recommendation for a particular scheme or product. Nor should it be taken that any scheme featured on the list is approved or backed by HMRC.”

It is always suggestible to take professional advice from the right QROPS consultants before choosing to get your pensions transferred.

Offshore QROPS Jurisdictions for India based UK Expats &  NRI’s--  Overseas Pensions scheme regulations effective from 9th, March 2017.

Though OFF shore QROPS jurisdictions like Gibraltar, Malta etc., had been offering attractive QROPS schemes over Indian QROPS  for Overseas Indians & NRI’s, which were popularly  known as “Third Party QROPS”, now the new UK regulation put an end for utilizing ‘Third party QROPS’ from getting  Indians their UK pensions transferred into it.

Following changes  have been announced as amendments by UK authorities to the Overseas Pensions scheme regulations effective from 9th, March 2017.

Transfers to QROPS requested on Or after 9th March 2017 will be taxed at a rate of 25% unless, from the point of transfer, both the individual making transfer & the pension scheme(QROPS) are in the same country  Or both are within the EEA, Or the QROPS is provided by the Individual’s employer.

As per the new changes, if the client is resident in UK while the UK pension transfer takes place, there is a liability of 25% tax on the transfer value, which the transferring scheme will deduct  & pay HMRC.  Also if the transfer happens into an immediate Annuity scheme, the receiving scheme is likely to deduct taxes & pay HMRC. However, at the time of transfer client is not a UK resident & the receiving scheme making payments after 5 years will not be effected.

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So this new UK regulation clearly states that, if  an India based UK expat/NRI want to retire in India. He can only choose QROPS from Indian Jurisdiction only to get his/her UK pensions transferred unlike earlier. Also, as per new regulation, he can no longer transfer his/her UK pensions whilst he or she in UK residency  unlike earlier. Earlier, Indian client had the option of choosing QROPS schemes across OFF-Shore jurisdictions like Gibraltar, Malta including India & also Indian client had the option of getting his/her UK pensions transferred to QROPS overseas whist  they are in UK itself.

To know in detail about the benefits or amount of pensionable service, the transfer value payment of UK pension pot will buy in the receiving pension scheme in India & also to know more about the options & comparisons of different QROPS schemes of different QROPS providers available in India , we wish to schedule a free, no obligation telephone or Email consultation to discuss ways we can help yourself and any of your colleagues who has accumulated pension fund in United Kingdom. You can reach us with the following contact details.

Mr Ravi Kumar. Financial Consultant (Code: 60272381, QROPS Consultancy),

A&B Law & Financial Associates, No-2720, 12th, Main, Jayanagar 4th Block, Bangalore-560 011

Cell: +91 9844519872

Email: ravi.sampige@gmail.com