Who is eligible to participate in a QROP Plan?

QROPS  are open to anyone who is over 18 years of age and under 75
years excluding Jersey, Canadian and US residents.

Those individuals who wish to transfer UK registered pensions must have left the UK or be in the process of leaving and intend to remain outside the UK for a settled purpose e.g. retirement or employment. If the client has not yet left the UK, all of the following conditions must be met:

• Client will be leaving the UK in the next 12 months;
• Client has already arranged accommodation in the country to which they are moving, or are in the process of doing so; and
• Client will remain in that country for a settled purpose e.g. retirement or employment.

What is the minimum/maximum transfer?

Acceptance into the Plan is subject to a minimum transfer value of £25,000.00 or currency equivalent. Thereafter, it is possible for the Member to continue to contribute to their plan subject to a minimum annual contribution of £3,000.00 or currency equivalent paid, monthly, quarterly, half yearly or annually or an ad-hoc contribution of £1,000.00.

There is no maximum limit that may be transferred to and/or accumulated within a QROPS. However, a transfer from a UK registered pension scheme to a QROPS is considered by HMRC as a ‘Benefit Crystallisation event’ which must be tested by the administrators of the UK scheme against the individual’s lifetime allowance.
 

What is the amount that must be kept in a Member’s plan to provide an income for life?

Although the HMRC requirement is for 70% of the transferred value of the pension to be retained by the Trustees to provide the Member with an income for life, the Guernsey Income Tax requirement, which applies at all times, is for a maximum lump sum of 25% of the value of the plan to be payable on benefit date.
 

Therefore for any QROPS approved plan in Guernsey, 75% of the member’s plan must be retained to provide an income for life.

Can you return to return to the UK?

The simple answer is yes, but if the client returns before taking benefits, advice must be taken to ensure that tax implications are considered.

If the client returns before benefits are payable, the respective PensionTrustees will be required to report this ‘event’ to HMRC and the pension scheme will become subject to UK pension regulations again. If Pension Trustees fail to do this, the Plan will lose its QROPS approved status. You have a  have a duty to
inform the Pension Trustee and Plan Administrator, if, and when, you return to the UK.