# QROPS Overseas Pensions



## michael4477 (Nov 19, 2017)

I am the sole remaining member of a Small Self Administered Pension Scheme ( SSAS ) valued at 05 April 2017 at £1.1M.
For sometime i have been in discussions with a Spanish tax firm on the transfer of my UK pension into an overseas Trust based QROPS.
A QROPS can be very tax efficient if Hacienda accepts this money can go into a 3 or 5 year temporary annuity but there is no pre clearance on such an application as i am told each case is dealt with on a one for one basis.
I have also been told that as i have been declaring drawdowns from the scheme since 2015 that i have crystallised the fund which could be looked at less favourable when Hacienda considers my case for temporary annuity.
My tax advisor tells me they have never had an application for a temporary annuity refused but goes on to say all these clients had not made drawdowns before applying for the temporary annuity as i have.
The initial and ongoing fees from my tax advisor, Trustee etc to arrange and organise a QROPS are very high, if my application for a temporary annuity is refused their fee structure is the same as if it had been granted.
So no temporary annuity means paying normal Spanish income tax plus my tax advisors fees for at least 5 years, of course their argument would be they will increase my existing investment enough to cover their fees so i will be no worse off and there will be considerable savings in IHT if i die after i an 75 if my money was in a QROPS.
The real problem is that Spain recognise Civil Law and don´t really understand Trusts.
I have a difficult decision to make as it seems i only have two choices - take it or leave it.
With a temporary annuity tax on regular quarterly drawdowns is around 2.5% compared to a maximum of around 45% under normal Spanish tax.
Time is not on my side, i am 73 now and have to have QROPS up and running by the time i am 75.
in addition no one knows what impact Brexit will have on UK overseas pension transfers or if Spain revokes all existing QROPS arrangements when the UK leaves the EU.
Oh, what do i do ?


----------



## Harry15 (Jul 7, 2018)

michael4477 said:


> I am the sole remaining member of a Small Self Administered Pension Scheme ( SSAS ) valued at 05 April 2017 at £1.1M.
> For sometime i have been in discussions with a Spanish tax firm on the transfer of my UK pension into an overseas Trust based QROPS.
> A QROPS can be very tax efficient if Hacienda accepts this money can go into a 3 or 5 year temporary annuity but there is no pre clearance on such an application as i am told each case is dealt with on a one for one basis.
> I have also been told that as i have been declaring drawdowns from the scheme since 2015 that i have crystallised the fund which could be looked at less favourable when Hacienda considers my case for temporary annuity.
> ...


Hi Michael. Are you still considering a QROPS or is this something you have already followed through on?


----------

