Introduction
Any client who is or may be planning to emigrate from the UK in the future should think about, or at least be advised about, these schemes. Moreover, they are pertinent for those clients who might leave the UK to work or retire, who have the rights to citizenship abroad or are married to someone from another country.
But, counterbalancing that, not everyone who moves abroad or fits the above categories will best be suited to robotically transferring their UK pension to a Qrops/Qnups.
If an adviser does not understand potential international tax consequences or the way to guide a client to the right advice, then they would perhaps best be served walking away or bringing in expert help.
This detailed guide examines the difference between the Qrops and Qnups and how they differ from conventional UK pensions. It also covers which clients are suitable for a Qrops/Qnups, when, why and how you transfer a client into such a scheme, the pros and cons for clients and advisers themselves, plus regulatory concerns and how to mitigate clients from these risks.
Supplementary material provided by Amin Malik, director of Delta Financial Management; and Geraint Davies, managing director of Montfort International.
In this guide
The pros and cons of Qrops/Qnups for advisers
How Qrops/Qnups differ from UK pensions
The difference between Qrops and Qnups
The pros and cons of Qrops/Qnups for clients
When and why you might transfer clients into Qrops/Qnups
Regulatory concerns around Qrops and Qnups
What advisers can do to protect clients and mitigate risk
How you transfer a client into Qrops/Qnups
Deciding which clients are suitable for Qrops/Qnups