QROPS in the USA. UK Pension Transfer to the USA

QROPS in the USA. Pension Transfer to the USA

For those of us in the UK who get job offers in the USA, you can take advantage of your new address to reduce your tax burden and transfer to a QROPS USA. It is estimated by the Institute for Public Policy Research (IPPR) that 685,000 UK domiciles live in the USA including over 130,000 pensioners.

qrop-in-the-usa

QROPS in the USA

QROPS in the USA. Pension Tranfer Relief

Much has been said about QROPS in the USA and there is a lot of misleading information on the internet. Whilst legislation actually allows a transfer from a UK registered pension scheme to a Qualfying Recognized Overseas Pension Scheme in the USA and there are even US registered pension schemes on HMRC’s official QROPS list, our understanding is that transfers to the USA are not currently allowed under US Internal Revenue rules because they will only permit ‘rollovers’ (pension transfers) from other US schemes. So, whilst HMRC allow it, previous attempts have led to the IRS blocking the transfer.

The fact that any overseas scheme that meets QROPS conditions could be registered with HMRC as a QROPS doesn’t in itself mean that the
scheme concerned will actually be allowed to undertake the QROPS USA transfer.

QROPS in the USA. Moving your UK pension to the USA

We have a solution where you can leave your pension under the protection of UK pension rules whilst holding your pension in USD to avoid currency fluctuations. Furthermore, you can hold any shares, funds, ETF’s or bonds denominated in US Dollars. We can even offer 100% capital protection on your pension if you are worried about the markets and want a low fixed return.

No tax would be payable in the USA in respect of any uncrystallised pension funds which are retained in the UK. However, please note that we CANNOT MOVE ANNUITIES, only money purchase, final salary, occupational pension schemes, etc.

Furthermore, you will be protected to allow access to a 25% free cash lump sum at 55 and this will be protected under the UK-USA tax treaty.

Please note that QROPS transfers to Guernsey, Isle of Man, Malta, Channel Islands, etc. have no reciprocal double tax treaty with the USA and can be attacked by the IRS who consider these vehicles to be ‘sham trusts’ and they are simply not recognized by the IRS. You could face a 30% withholding tax and up to a 100% of the value of the pension as a penalty. This could be imposed on you and your employer.

Our QROPS in the USA solution allows access to USD, security under UK protection umbrella, 25% access as a lump sum to your pension and freedom of investment. Your pension income can then be paid into your US account and the US cannot tax you on this money.

For more information, please email qrops@credendaassociates.com

QROPS in the USA article written by QROPS Specialsists

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s