UK pensions, taxes on death and beneficiaries

HMRC continually changes the UK pension rules and important changes and updates can easily be missed. Make sure your adviser is up to speed with all new rules Understand the rules on death and how to ensure wealth is passed onto your family in the future.

SIPPs versus QROPS at a glance

SIPP versus QROPS versus QNUPS / ROPS (Prior to retirement)

	SIPPs	QROPS	QNUPS
If UK taxed, can you make tax relieved contributions?
If not UK taxed still, can you make contributions to it?
Can you transfer fund at death without restriction
Can you transfer fund at death under 75 without restriction
Contributions restricted to UK maximum levels
Good for passing fund onto relatives at death
More information available on qualifying criteria?	More	More	More

^{* Prior to retirement then the SIPP should be considered first, then depending on circumstances and wealth either a QNUPS or QROPS.}

SIPP versus QROPS versus QNUPS / ROPS (Post retirement)

	SIPPs	QROPS	QNUPS
Can you take option of income or lump sum or both
Income available at possibly higher levels/reduced tax
Benefits for overseas expats better than UK options
Can you transfer fund at death under 75 without restriction
Can you transfer fund at death over 74 without restriction
Lump Sum over 25% taxable as income in UK	**	**	**
Lump Sum of 30% available outside UK tax-free	**
Lump Sum over 30% available (ignoring tax)		**	**
Improved Inheritance tax benefits after retirement
More information available on qualifying criteria?	More	More	More

^{** Under UK legislation it is possible for retirees’ to take funds out in excess of 25% up to 100% paying income tax on the excess. That income tax will be due in the country they live in depending on the Double Tax Treaty (it may mean no tax is applicable on a SIPP for example outside the UK). Overseas it is possible to raise tax free cash to 30-35% of the funds.}

^{* Post retirement over 74then QNUPS or QROPS offer advantages over a SIPP and should be considered for some countries. Under 75 then a SIPP should be considered first where possible.}

SIPP versus QROPS versus QNUPS / ROPS (General)

	SIPPs	QROPS	QNUPS
Can you borrow / take loans based on your pension?
Can you invest in a property directly?
Can you invest in a broad range of investments?
If you plan on returning to UK is it appropriate		*
Is it suitable for you if you live overseas?
Is it available worldwide?
Do you have to live overseas (Outside UK) to qualify?
More information available?	More	More	More

^{* Not recommended}

Download your free brochures