What are the benefits of a QROPS for US residents?

qropsIf you have contributed to an occupational or private UK pension, there may be several benefits in using a QROPS.

These benefits could include:

- Reduced tax burden when accessing your pension

- The ability to consolidate a number of pensions into a single QROPS with a single investment strategy.

- No requirement to purchase an annuity

You also have the opportunity to pass more of your wealth onto your heirs - normally a QROPS is free of UK inheritance tax.

The UK-USA double taxation treaty is quite sparse and can be unfavourable to US residents. Other jurisdictions like Malta have a much more sophisticated double taxation agreement with the USA giving substantial tax advantages while still being UK compliant.

While there are many possible benefits in moving your UK pension offshore there are also potential pitfalls to navigate.

It is important that you consult with an independent advisor that specialises in these sorts of pension transfers. If you would like Expat & Offshore to recommend an advisor then please don’t hesitate to get in touch.