UK Pensions
“WHAT IS A SIPP?”
A Self Invested Personal Pension (SIPP) is a Registered Pension scheme under the terms of the Finance Act 2004.
SIPPs are designed for investors who want control over their pension without being dependent on any one fund manager or insurance company. As such, a SIPP requires active management and a degree of investment expertise. Furthermore, the charges (levied by the SIPP manager) may be higher than for a personal pension or stakeholder plan.
Unlike a standard personal pension, a SIPP member has a much wider choice of assets to invest in, each of which can be selected to meet the individual’s personal circumstances and requirements.
It’s possible to use a SIPP to raise a mortgage to fund the purchase of commercial property, where the rental income paid into the SIPP either completely, or partially covers, the mortgage repayments and/or the property’s running costs.
Please note SIPPs are not suitable for everyone investing into a pension, and your Horizon will need to assess your situation to determine suitability.
“QUALIFYING RECOGNISED OVERSEAS PENSION SCHEME”
Qualifying Recognised Overseas Pension Scheme (QROPS) is an overseas scheme that meets local tax rules, is recognised by Her Majesty’s Revenue and Customs (HMRC) and offers varied retirement planning opportunities for mainly non-residents of the UK.
This type of pension scheme is based outside the UK and is available to individuals who have UK based pension funds but who primarily living outside the UK. HMRC defined the legislation in April 2006 allowing the transfer of UK pension funds to other schemes which meet their requirements.
It is particularly valuable to individuals who have left company pension funds in the UK but who reside abroad and have little intention of returning to the UK in the near future. For any individual who has entered into a pension scheme in the UK (regardless of Citizenship) there is a possible advantage in moving the fund into an environment where the proceeds of the pension may be treated more favourably.
Through FSN Horizon has agreements with several pension scheme providers so our Business Partners clients can choose from a wide range of schemes, in their chosen jurisdiction, at their preferred price.
Issues such as currency, residency, and tax status of the country of retirement are paramount in making sure an investor has chosen wisely when transferring a pension fund from a UK scheme into a QROPS and using such a scheme allows freedom of movement, whilst ensuring the pension is in the best possible environment for the investor’s future.
At Horizon we are dedicated to making sure you receive the best, most professional advice concerning your pension and your retirement. Please contact Horizon for comprehensive advice.
WHAT IS A QNUPS?
The term Qualifying Non-UK Pension Scheme (QNUPS) is used to describe a non-UK scheme that meets the conditions in UK tax rules to be free from UK Inheritance Tax (IHT).
A QNUPS could provide you with a structured pension scheme that conforms with legislation and rules in the jurisdiction in which it is set up. For example if the QNUPS is set up in Malta, the Maltese legislation and rules apply. These rules give you clarity over when you can take income from your pension fund and how it will be paid.
A QNUPS is portable and flexible, particularly with regards to currencies, making it ideal if you work freelance abroad, regularly change jobs, or move to different countries and are concerned about the impact of exchange rate fluctuations on your investments.