# QROPS advice - where to go?



## john4spain (Sep 9, 2011)

hi guys,

I've come across a couple of sites about QROPS.

SNIP

Has anyone else on here taken a qrops out and what is there to look out for - negatives? positives?

still not sure if it's for me or not even though I will def be in spain over 5 years.

many thanks


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## thrax (Nov 13, 2008)

There are many companies such is this one. I'm not advertising but Blevins Franks has a good name. I've never heard of the one you have mentioned but in the end, it's your money and I don't think anyone here will advise you where to go for financial advice. The choice is yours...


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## VFR (Dec 23, 2009)

*Negatives?* you ask.

From what I have read you can have your State Pension now & spend it.

Well you will have to make your own mind up about that, but I would not go anywhere near an company/individual trying to promote this scam *(IMO)*


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## john4spain (Sep 9, 2011)

Thanks guy for your replies.

will check out blevins franks.

So a large company rather than an induvidual IFA then. ok.

Is QROPs legit?


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## mrypg9 (Apr 26, 2008)

john4spain said:


> Thanks guy for your replies.
> 
> will check out blevins franks.
> 
> ...



From what I can gather, it depends on the type of pension. 
If it's a SIPP, be very careful. There are strict rules as to what you can and can't do as you will already have received tax relief in the UK.
I would never use an independent advisor. Many live from the commissions they receive from pushing specific products.
Five years ago I was awarded several £thousands compensation because I was mis-sold a product by a IFA.
Best to consult your accountant, fund manager , even your bank manager but bear in mind that somewhere along the line you will be paying for any service you may receive.


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## djfwells (Sep 28, 2009)

I released 2 small private pensions through a New Zealand QROPS earleir this year. Went as smooth as you like.


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## mrypg9 (Apr 26, 2008)

djfwells said:


> I released 2 small private pensions through a New Zealand QROPS earleir this year. Went as smooth as you like.


Did you read a post -I think it must date back quite a few months -about how HMRC is closing down these 'off-shore' loopholes and imposing severe penalities on those who make use of them?
I know it depends on the type of pension but I would advise anyone contemplating realising a pension to contact HMCR and find out from the source about any possible pitfalls.
Do not take the word of any individual or company which stands to benefit from handling your pension.


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## djfwells (Sep 28, 2009)

mrypg9 said:


> Did you read a post -I think it must date back quite a few months -about how HMRC is closing down these 'off-shore' loopholes and imposing severe penalities on those who make use of them?
> I know it depends on the type of pension but I would advise anyone contemplating realising a pension to contact HMCR and find out from the source about any possible pitfalls.
> Do not take the word of any individual or company which stands to benefit from handling your pension.


Quite right.
I looked into the subject of QROPS in depth for quite a while and what I found (and this is just my opinion) was that what QROPS scheme worked for 1 person was not always a good scheme for the next person. There are simply too many variables here and it is is important to take professional advice to find the one that suits you and your requirements.
- BUT, even more important to ensure that the advice that you are taken is from a reliable and reputable source, who is professionally qualified and experienced in giving this kind of advice specifically.
- Also, check how and where they are regulated - If your advisor is based in the Spain then the CMNV and the DGS is a good place to start.


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## jackdaw (Sep 15, 2011)

john4spain said:


> hi guys,
> 
> I've come across a couple of sites about QROPS.
> 
> ...



When I set up my QROPS I looked into the issue in some depth as I did not want to fall victim to commission hungry advisor. I decided to use a company regulated in Gibraltar because as I understand it the regulation is much more stringent than that in Spain. Anyway the company I used were excellent and fully "transparent" in the issue of fees, I was very pleased.


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## mrypg9 (Apr 26, 2008)

jackdaw said:


> When I set up my QROPS I looked into the issue in some depth as I did not want to fall victim to commission hungry advisor. I decided to use a company regulated in Gibraltar because as I understand it the regulation is much more stringent than that in Spain. Anyway the company I used were excellent and fully "transparent" in the issue of fees, I was very pleased.



It might be a good idea to look back at an earlier thread about Gibraltar and QROPS.
A poster was actually working on closing the Gibraltar loophole,I think on behalf of HMCR,and issued dire warnings as to what penalties HMRC might impose on improperly liquidated QROPS.
We had vaguely thought about it but he clearly knew what he was talking about and we stopped thinking about it.
Can't remember the thread title...it was startedabout a year ago by someone who had paid 15% -yes 15% -of the not excessively large sum of money realised via a FSA in Alhaurin....
He was advised that he could well be penalised by HMCR who are shutting down all loopholes for realising pension schemes which have enjoyed UK tax advantages.
It seems HMCR could issue a demand for return of unpaid tax.....


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## jackdaw (Sep 15, 2011)

mrypg9 said:


> It might be a good idea to look back at an earlier thread about Gibraltar and QROPS.
> A poster was actually working on closing the Gibraltar loophole,I think on behalf of HMCR,and issued dire warnings as to what penalties HMRC might impose on improperly liquidated QROPS.
> We had vaguely thought about it but he clearly knew what he was talking about and we stopped thinking about it.
> Can't remember the thread title...it was startedabout a year ago by someone who had paid 15% -yes 15% -of the not excessively large sum of money realised via a FSA in Alhaurin....
> ...


I understand what you are saying, however when I mentioned Gibraltar I was refering to where the advisor company is regulated NOT where the actual QROPS is based. My QROPS is based or domiciled in Guernsey and therefore approved by HMRC.


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## Cary (Nov 1, 2011)

I am surprised to see some people mentioning it is a scam. I am still looking into it but was under the assumption that a QROPS scheme is government approved? 

Quote "Fortunately, in 2006, legislation was introduced that facilitated the establishment of Qualifying Recognized Overseas Pension Schemes, or QROPS. Basically, these are schemes that fulfill the standards of Her Majesty’s Revenue and Customs, and are accredited as being worthy recipients of transferees from UK-based pension schemes". Source - Basic Information On A QROPS Pension Scheme | QROPS Pensions Advice In Simple Plain English | Save £££'s Now


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## mrypg9 (Apr 26, 2008)

Cary said:


> I am surprised to see some people mentioning it is a scam. I am still looking into it but was under the assumption that a QROPS scheme is government approved?
> 
> Quote "Fortunately, in 2006, legislation was introduced that facilitated the establishment of Qualifying Recognized Overseas Pension Schemes, or QROPS. Basically, these are schemes that fulfill the standards of Her Majesty’s Revenue and Customs, and are accredited as being worthy recipients of transferees from UK-based pension schemes". Source - Basic Information On A QROPS Pension Scheme | QROPS Pensions Advice In Simple Plain English | Save £££'s Now



That is scarcely a disinterested, independent site, is it?
From what has been posted earlier it would seem that regulations have changed in the past five years.
AS I said, anyone considering this should consult an individual or agency which does not stand to gain from the transaction.


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## seo (May 12, 2008)

*QROPS Portugal*



john4spain said:


> hi guys,
> 
> I've come across a couple of sites about QROPS.
> 
> ...


When my folks moved to Portugal they moved their pensions to QROPS. Don't know the exact details but they seem happy with the way its worked out for them tax wise. Here's a link for a video about how QROPS works in Portugal: Viddler.com - QROPS Portugal - Uploaded by portugal


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## Stravinsky (Aug 12, 2007)

seo said:


> When my folks moved to Portugal they moved their pensions to QROPS. Don't know the exact details but they seem happy with the way its worked out for them tax wise. Here's a link for a video about how QROPS works in Portugal: Viddler.com - QROPS Portugal - Uploaded by portugal



They may not be aware that a task force has been set up by HMRC to investigate the tax implications of many of these schemes then

http://www.telegraph.co.uk/finance/...es-specialist-team-to-tackle-QROPS-abuse.html


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## mrypg9 (Apr 26, 2008)

Stravinsky said:


> They may not be aware that a task force has been set up by HMRC to investigate the tax implications of many of these schemes then
> 
> HMRC establishes specialist team to tackle QROPS abuse - Telegraph



Quite. 
I seem to remember that some time back a member of that task force which was then in the process of being set up posted on this forum to warn people that they may find HMRC may well claw back the unpaid tax on some kinds of pensions, SIPPS being a prime example.
You can't have your cake and eat it....you can't enjoy tax relief - at the expense of other taxpayers - and expect to escape from the conditions you accepted when you took out your pension scheme.


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## Benq (Dec 21, 2011)

*Approval*



Cary said:


> I am surprised to see some people mentioning it is a scam. I am still looking into it but was under the assumption that a QROPS scheme is government approved?
> 
> Quote "Fortunately, in 2006, legislation was introduced that facilitated the establishment of Qualifying Recognized Overseas Pension Schemes, or QROPS. Basically, these are schemes that fulfill the standards of Her Majesty’s Revenue and Customs, and are accredited as being worthy recipients of transferees from UK-based pension schemes".



QROPS are not HMRC approved, they are recognised and this is on a sort of "trust" basis. The list of recognised QROPS does not involve these schemes being vetted and signed off by HMRC.

This is the wording taken direct from HMRC's website.

"*It is not to be taken as a recommendation for a particular scheme or product.*

This list is based on information provided to HMRC by these schemes when applying to be a QROPS. As part of its application the scheme notifies HMRC that it fulfils the requirements for being a “recognised overseas pension scheme”. Publication on the list should not be seen as confirmation by HMRC that it has verified all the information supplied by the scheme in its application. If a scheme has been included on this published list in circumstances where it should not have been included because it did not satisfy the conditions to be a recognised overseas pension scheme, any transfer that has been made to that scheme could potentially give rise to an unauthorised payments charge liability for the member (see RPSM14102020)."


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