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