RBC cees, part of Royal Bank of Canada has launched two Qualifying Recognised Overseas Pension Schemes (QROPS) which are both available through its offices in Guernsey. The QROPS are designed for individuals, but RBC cees also provides trustee and administration services for corporates wishing to establish their own QROPS.
The RBC cees QROPS products, the Fermain QROPS and the Havelet QROPS, have been developed to take advantage of the announcement in April 2006 that individuals with UK pension benefits who have already planned to become non-resident (in terms of the UK) for tax purposes can move their pension benefits out of the UK to a QROPS with HMRCs full approval. This enables individuals to consolidate their UK pensions and offshore pensions, providing them with investment flexibility, member loans, flexible receipt of benefits, and giving them an opportunity to take a 25% tax-free lump sum on retirement along with other benefits.
QROPS is particularly pertinent in the current environment, as RBC Wealth Management is seeing an increasing number of enquiries from clients who are thinking about leaving the UK as a result of the 50% income tax rate announced in the last Budget, says Lindsey Doud, Director & head of Business Development for RBC cees.
The two RBC cees QROPS complement our growing range of pension solutions for individuals and companies. QROPS are certainly worth considering for UK residents intending to live abroad permanently, and we make it simple to transfer UK pensions to Guernsey to give our members flexibility and financial planning opportunities, says Lisa director & head Barnett, of RBC cees in Guernsey.
L.D.