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The Financial Benefits of Being an
Expat...benjamin franklin style
Every week in this article Helen Couldrey, a financial
consultant with the deVere Group, and also a qualified
English lawyer, will give you tips and ideas of how to
take advantage financially of being an expat. Helen has
clients in Bangkok, Hua Hin and Cha-Am who she helps
to maximise the financial benefits of living overseas.
UK PENSIONS - Tax SAVINGS ANYONE?
• Do you have a UK pension?
• Are you living in Thailand?
• Are you interested in tax savings related to your UK
pension?
If you answered yes to the above, then read on.
Holders of UK pensions that have moved overseas often
face difficulties with their pension schemes as the
pension benefits are usually frozen in the UK. Further,
if you leave your pension in the UK and something were
to happen to you, the UK government could apply a tax
on the pension pot, sometimes as much as 55%. This
would result in less money for the remaining spouse or
beneficiary. This is often the case for those holding UK
pensions however, is there anything that can be done
to improve the position?
If you are living in Thailand as a non-UK resident
CHA-AM AND HUA HIN
Retirement Planning - Education Fee Planning
Regular Savings - Tax Saving
Lump Sum Investments
Helen Couldrey, BA (Hons), L.L.B, CISI
Contact Helen for a finance review
086 088 2127
[email protected]
then the answer is yes…, and it comes in the form of a
QROPS. QROPS were introduced in April 2006 in order
to simplify pensions and allow UK Pension Holders to
access their funds in their country of residence. A
QROPS can also have significant tax advantages.
• What is a QROPS?
A Qualifying Recognised Overseas Pension Scheme
(QROPS) is an overseas pension scheme that (i) has
met the requirements of the HMRC, (ii) that can receive
the transfer of UK Pension Benefits without penalties
for unauthorised payments.
• What are the benefits?
There are many benefits to a QROPS. Here are a few.
Firstly, if something were to happen to you, the 55%
death charge tax on your UK pension can be avoided.
Secondly, you can pass 100% of your remaining pension
onto your loved ones. Further, a QROPS will also allow
you to take investment control of your pension funds.
• I have more than one UK pension? Can I consolidate
them into one plan?
Yes. Rather than having a complex web of finances, a
QROPS can consolidate your pensions into one pot.
This makes your financial planning much simpler
and saves you having to sift through various different
schemes.
• I have already started drawing down my pension.
Can I still transfer into a QROPS?
Yes, provided that you aren’t (i) drawing down from
a final salary scheme/defined benefit scheme or (ii)
receiving an annuity.
• How much do I need to have in my pension pot in
order to do a QROPS?
QROPS transfers normally start at around GBP 50,000.
However it is always worth making an enquiry if your
pension pot is smaller than this.
• Do I need to be a UK citizen to benefit from a
QROPS?
No. Having a UK pension is what allows you to apply
for a QROPS.
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