Why Do You Even Drink?

[KittenKong]

What is QROPS ?

QROPS is a vast minefield actively promoted by some of the biggest crooks on the planet.

To be approached as you would approach someone with Ebola.

[jpinx]

As far as I can tell --

you can tell your PRIVATE UK pension provider to pay your monthly pension into any bank in the world. If the bank is in a non-EU/EEA bank they will/should not deduct any tax.

your UK state pension will always be taxed by UK HMRC - even if it's paid into a bank at the north pole!!!

edited to add -- if your UK state pension is paid outside the designated group of countries with whatever reciprocity agreements, you will lose the "extras" (fuel allowance, xmas bonus, etc) and annual increases

Not correct unfortunately. The issue is where does the private pension income arise, if it's earned in the UK then it doesn't mater where it's paid, if tax is due on it then you can't escape it, unless you go the QROPS route.

And state pension is not taxed at source, if you have personal allowance headroom room then no tax is due on it, if you do not and you have other income that arises in the UK, that will be taxed at a higher rate to cover the UK state pension tax that is due.

Maybe this is something new? What is QROPS ?

My UK private pension provider (Pru) asked me where I was resident in order to deduct the correct tax.

State pensions are not taxed at source, but they are always liable for UK tax at whatever is the appropriate rate according to your allowances and code.

You'll forgive me, but based on all the things you have said thus far, you need to seek professional advice on this subject, especially if you are unaware of QROPS!

At a high level: for the time being all British tax payers receive a personal allowance, it's currently about £10k a year. All income that arises (earned) in the UK is added up and the personal allowance is deducted from the total. Where the total is less than the allowance, no tax is due, regardless of whether it's investment income, private pension or state pension money. But where the total income is higher than the personal allowance, that balance becomes taxable.

Most expats are able to move their investments off shore to escape tax, private pensions can be moved using the QROPS system (google QROPS). State pension cannot be moved off shore, it can be paid anywhere but it can't be moved in the same way that QROPS permits.

None of these things are new in any way.

Finally and for the benefit of the other poster who raised the issue of IHT:

UK IHT is due on assets over £325k, it's double that amount for a husband and wife where assets are held in joint names - IHT does not apply to the Thai wife of a UK citizen. I strongly suggest you seek professional advice on this subject also.

The correct response would have been..

"qualifying recognised overseas pension schemes"

http://www.hmrc.gov.uk/pensionschemes/qrops-list.htm

http://www.hmrc.gov.uk/pensionschemes/qrops.pdf

Inheritance tax UK .......

http://www.hmrc.gov.uk/inheritancetax/

http://www.hmrc.gov.uk/rates/iht-thresholds.htm

http://search.hmrc.gov.uk/kb5/hmrc/hmrc/results.page?qt=inheritance+tax

Note the thresholds and their combinations before you start to look further.....

Edited to add some useful links...

Edited August 6, 2014 by jpinx

[chiang mai]

"The correct response would have been..

qualifying recognised overseas pension schemes"

The correct response appears in post 31, trust me on that.

And before anyone goes too far down trying to understand IHT, it's worth pointing out that IHT cannot be avoided by changing tax residency, to do so would require a change of domicile which is notoriously difficult to achieve.

[jpinx]

"The correct response would have been..

qualifying recognised overseas pension schemes"

The correct response appears in post 31, trust me on that.

---

That's why I didn't know what it is !

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[chiang mai]

"The correct response would have been..

qualifying recognised overseas pension schemes"

The correct response appears in post 31, trust me on that.

---

That's why I didn't know what it is !

----

You must get out more, QROPS came out in 2006 and even HMRC refers to it by that acronym.

[jpinx]

"The correct response would have been..

qualifying recognised overseas pension schemes"

The correct response appears in post 31, trust me on that.

---

That's why I didn't know what it is !

----

You must get out more, QROPS came out in 2006 and even HMRC refers to it by that acronym.

2006 I was resident in South America so not really focussed on UK stuff. Besides, I have a tame accountant friend who does any UK stuff I might need. I take enough interest to stay below the thresholds, so the rest kinda misses me

[laislica]

Steady boys LOL

I had heard of QROPS ages ago but decided it was not for me.

I have been drawing pensions since 2000

I may be somewhat like Jpinx in so far as, if I have enough to manage to live in a reasonable way, I stop looking and get on with living.

However, having remarried about 16 months ago, I thought it was my duty to do a few checks like

make a will and make things as easy as poss for my wife to inherit when I pass.

I am 27, she is 25, Oh yes, dyslexia rules KO!!

A great thread and many thanks for all the contributions.

At least I am learning what questions to put to an expert.

[jpinx]

Steady boys LOL

I had heard of QROPS ages ago but decided it was not for me.

I have been drawing pensions since 2000

I may be somewhat like Jpinx in so far as, if I have enough to manage to live in a reasonable way, I stop looking and get on with living.

However, having remarried about 16 months ago, I thought it was my duty to do a few checks like

make a will and make things as easy as poss for my wife to inherit when I pass.

I am 27, she is 25, Oh yes, dyslexia rules KO!!

A great thread and many thanks for all the contributions.

At least I am learning what questions to put to an expert.

Actually you hit the nail absolutely square on the head there. Knowing the right questions is 99% of the battle.

Very happy you are happily married...... again!!!! Didn't you learn the first time ? (....joking!!!!...)

[laislica]

Steady boys LOL

I had heard of QROPS ages ago but decided it was not for me.

I have been drawing pensions since 2000

I may be somewhat like Jpinx in so far as, if I have enough to manage to live in a reasonable way, I stop looking and get on with living.

However, having remarried about 16 months ago, I thought it was my duty to do a few checks like

make a will and make things as easy as poss for my wife to inherit when I pass.

I am 27, she is 25, Oh yes, dyslexia rules KO!!

A great thread and many thanks for all the contributions.

At least I am learning what questions to put to an expert.

Actually you hit the nail absolutely square on the head there. Knowing the right questions is 99% of the battle.

Very happy you are happily married...... again!!!! Didn't you learn the first time ? (....joking!!!!...)

Hmmm, maybe if you play a game long enough you get to know the rules....

Also need some good luck and friends like on TVF to help refine the questions!

Thanks a million for all the great contributions.

[elliottm]

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Edited November 16, 2014 by elliottm