UK pensions transfer to a QROPS Overseas (India)- Pension Transfer Warnings

Transfers to Overseas arrangements are permitted under UK law, but depending upon the status of the Receiving Arrangement, there may be tax charged triggered. There is no tax charge triggered if the transfer is made to an overseas arrangement that is registered as a ‘Qualifying Recognised Overseas Pension Scheme’(QROPS) as defined under UK Finance Act 2004.

Pension Transfer Warnings

Authorized overseas transfers can now be made into ‘Qualifying Recognised Overseas Pension Schemes’(QROPS). Every UK Pensioner will take reasonable steps to ensure that a Member’s pension transfer is an ‘authorised payment’ under UK tax rules.  

Occasionally , it turns out that a pension scheme that appears to be legitimate is involved in a fraudulent activity known as ‘pension liberation’ or trust busting’. The Member should be suspicious if the receiving scheme has offered to pay Member’s full benefits directly to him as a cash sum, minus a commission charge. The Member could be left with a tax bill of up to 55% of the total payments made in this way.

If the transfer is to an overseas pension scheme, for example, if the transfer is to a HMRC  recognized Pension scheme in India, it is always good to seek expert advice on the tax rules in the country(for example India) in which the receiving scheme is based. In some countries, you could be taxed on the transfer itself or on subsequent investment returns (please note HMRC recognized QROPS are not only in India but also across the Globe and you can choose any QROPS across the Globe including in India to get your UK pensions transferred). In many others you could suffer adverse tax consequences if the tax rules do not permit a transfer from a UK pension scheme.

If you are looking to transfer your UK Pensions (NHS or any other UK Registered Private Pensions) to a QROPS in India or to any other QROPS across the Globe & if you are unsure about the potential consequences of your Pension Transfer , Please do contact me with below contact details.

FOR STARTING UP OF THE TRANSFER PROCESS CONTACT :

Anusuya .R

Financial Advisor

SBI Life Insurance Co LTD,

# 23, Yamuna Complex,

1st Floor, 7th Cross, Malleswaram, 
Bangalore: 560003.

M +91  9980927393

Email:  qropstoindia@gmail.com

Advantage NRIs/PIOs after Rupee fall by transferring their UK pensions to a QROPS in India

The rupee has fallen to the extent of about 24% in the last four months. It’s no doubt if policy makers gone sleepless. But for NRI’s/PIO’s  it has created a golden opportunity to earn significantly higher value for their foreign exchange and at the same time park money in India. Still there is no agreement as to where the rupee would stabilize.

While USD stands at Rs 62 over INR, One British sterling equals to almost 100 today. That means 100,000 GBP is equal to 1,00,00000 INR. For an NRI who would have got Rs 54 Lakh for 100,000 USD four months ago, he will now get  INR 67 lakh now. As mentioned above Since 100,000 GBP equals to 1,00,00000 INR, this gives great opportunity for UK NRI/PIO/OCI card holders to make most of this increased Exchange rate by transferring their accumulated UK pensions to a ‘Qualifying Recognised Overseas Pension Scheme (QROPS) in India. 

Indian professionals do contribute to UK pensions through their UK employers to avail various financial benefits including tax benefits in UK. India based UK professionals like engineers/accountants/finance professionals had been continuously  contributing to UK registered Pension schemes through their employers. The accumulated pensions range from 2000 GBP 200,000 GBP.

But professionals like doctors had been contributing to NHS pensions for relatively long time than any other India based professionals. The accumulated pension Corpus for doctors range between 25,000 GBP to 400000 GBP. HM Revenue & Customs of UK recognizes few pension schemes in India  as ‘Qualifying Recognised Overseas Pension Scheme(QROPS) & issued acceptance letters to the respective Insurance Companies as a proof of recognizing few pension scheme as QROPS. The QROPS program was launched on 6 April 2006 as a part of new legislation with the objective of simplifying pensions. 

At current rupee levels and with the sluggish conditions in many markets that are expected to remain for the next few months NRI’s/POI’s who accumulated UK pensions could possibly benefit substantially by transferring their UK pensions to QROPS in India. Especially India based UK doctors could possibly benefit substantially by transferring their NHS pensions to a QROPS in India. 

FOR STARTING UP OF THE TRANSFER PROCESS CONTACT :

Anusuya .R

Financial Advisor

SBI Life Insurance Co Ltd,

# 23, Yamuna Complex,

1st Floor, 7th Cross, Malleswaram 
Bangalore: 560003.

M +91  9980927393

Email:  qropstoindia@gmail.com

SBI Life Annuity Plus- A modified QROPS scheme of SBI Life Insurance in India

SBI Life Annuity Plus pension scheme which is a ‘Qualifying Recognised Overseas Pension Scheme(QROPS) has been modified in terms adding few attracting features . The large number of clients who worked in UK & accumulated Pension Corpus with NHS & with other UK Pensioners transferred their UK pensions to new modified SBI Life Annuity Plus pension scheme.  The modifications are as under:

• Annuity option- “Joint-life and 100% of annuity to spouse on death of the annuitant with
return of purchase price on death of last survivor” shall also be available in addition to
the existing 10 Annuity  options -Single Life.

• Slabs of incentive for higher purchase price have been modified.
• Service tax to be collected from the policyholder along with the purchase price.

Type of annuities available:

Various annuity options available under the Plan are as under:

i) Annuity for life
ii) Annuity guaranteed for 5, 10, 15 or 20 years and for life thereafter
iii) Annuity for life with return of purchase price on death
iv) Annuity for life increasing at a simple rate of 3% p.a.
v) Annuity for life with a provision for 50% of the annuity to the spouse of the annuitant
for life on death of the annuitant.
vi) Annuity for life with a provision for 100% of the annuity to the spouse of the annuitant
for life on death of the annuitant.
vii) Annuity for life with a provision of 100% of the annuity payable to spouse during his/
her life time on death of annuitant with return of purchase price on the death of last
survivor.
viii) Life time Income with Annual with Annual increase of 5%
ix) Life time income with Balance capital Refund
x) Lifetime income with capital refund in parts

Eligibility Conditions and Features:

(a) Minimum Age at entry: 40 years last Birthday
(b) Maximum Age at entry: 80 years last Birthday
(c) Maximum Purchase Price/ Transferable UK pension Fund: No Limit

Surrender value:

No surrender value shall be available under this plan.

Loan:

No loan shall be given by the Corporation to the policyholders under this plan.

Assignment / Nominations:

No assignment is allowed under this policy.
Notice of change of nomination should be submitted for registration to the office of the
corporation, where this policy is serviced if the type of annuity opted is either for a
guaranteed period and for life thereafter or with return of purchase price. In registering a
nomination the Corporation does not accept any responsibility or express any opinion as
to its validity or legal effect.

Normal requirements for claim:

On death of the annuitant:
The normal documents which the claimant shall submit while lodging the claim in case of
death of the Annuitant shall be the claim form, as prescribed by the Corporation,
accompanied with original policy document, proof of title, proof of death, whichever is
applicable, to the satisfaction of the Corporation.It will apply in case the option exercised is for.

FOR MORE DETAILS & STARTING UP OF THE TRANSFER PROCESS CONTACT:

Anusuya .R

Financial Advisor

SBI Life Insurance Company Ltd, # 23, Yamuna Complex,

1st Floor, 7th Cross, Malleswaram, Bangalore: 560003.

M +91  9980927393

Email:  qropstoindia@gmail.com

Exchange rate increases impact on QROPS transfer to India

1 British Pound Sterling equals 96.43 Indian Rupee. Click the following link for details

http://www.google.co.in/#hl=en&tbo=d&output=search&sclient=psy-ab&q=uk+pound+to+rupees&oq=uk+pound&gs_l=hp.1.3.0l4.6693.14602.0.17940.8.8.0.0.0.0.1731.10263.6-2j4j2.8.0.les%3B..0.0...1c.1.umArLXWQhos&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.&bvm=bv.1357316858,d.bmk&fp=4a0de429d1193484&biw=819&bih=335

It is the gain of Upfront 11% more on the UK Pensions Corpus to be transferred comparatively to last 3 months back transfers.One can make most of the increased Exchange rate by transferring UK pensions to India, if transfer process is initiated at the earliest.

FOR STARTING UP OF THE TRANSFER PROCESS CONTACT :

Anusuya .R

Financial Advisor

SBI Life Insurance Company Ltd, # 23, Yamuna Complex,

1st Floor, 7th Cross, Malleswaram, Bangalore: 560003. 

Bangalore: 560001.

M +91  9980927393

Email:  qropstoindia@gmail.com