The vast array of UK and European pensions is complex and yours will need specific research and investigation. There are thousands of structures across the EU and the vast majority can be transferred into international retirement structures, for the purposes of enhancing pension benefits, reducing taxation (depending on jurisdiction) Family Estate Planning and Asset Protection.
Most EU pensions can be transferred to schemes in other EU states that hold a more beneficial tax position for the member. This takes careful planning and an in-depth understanding of the Double Taxation Agreements (DTA) between member states.
Claremont works with several international tax advisory agencies, to ensure that pension funds are only moved to jurisdictions that hold tangible benefits for the member and the highest levels of investor protection.
The current state of Defined Benefit (Final Salary) pension schemes has put many pension funds in serious risk of collapse. The 2018 collapse of Carillion has seen thousands of scheme members thrown into uncertainty. There are hundreds of company schemes across the UK and Europe that have deficits, in their pension funds, of values greater than the company’s market value, this is a real concern.
To have Claremont run an analysis on your scheme, or for more information on UK and European pensions, please contact us on firstname.lastname@example.org
A Self Invested Personal Pension or SIPP, is a type of personal pension scheme. The SIPP itself is a pension ‘wrapper’ that holds investments until retirement and the investor starts to draw a pension income. Most SIPPs allow investment in a range of assets not just in an insurance backed fund provided by an insurer. SIPPs are designed for people who want to take more control over their funds and protect them from company deficits. These pension funds are generally managed by a Discretionary Fund Manager (DFM) or they can be managed by the policy owner themselves. (www.hmrc.gov.uk).
Claremont work with numerous international DFM’s and can guide you through the world of investment options available for your SIPP.
A Qualifying Non UK Pension Scheme (QNUPS) is pension trust structure, the assets held are in the legal ownership of the trust and not the member but held for the member’s benefit. A QNUPS does not hold UK tax relieved funds (i.e. contributions are paid after tax), and therefore, there are no limits on the pension fund size, thus making it an ideal supplementary pension. The Trustee will distribute any residual value, normally directly to nominated beneficiaries of the late member, at the Trustee’s discretion and in accordance with the plan rules.
Upon the member’s death, any residual value will normally fall outside of a member’s estate and will be held by the Trustee, in turn this will be distributed to the nominated beneficiaries correlating with the late members letter of wishes. The opportunities and benefits may vary depending on where the member and their subsequent beneficiaries are tax resident.
A Qualifying Recognised Overseas Pension Scheme (QROPS) is a pension scheme established in a regulated jurisdiction outside the of UK that is broadly similar to a UK registered pension scheme. When an individual transfers their UK pension savings to another registered pension scheme or to a QROPS the transfer can be made free of UK tax (where it does not exceed the lifetime allowance). (www.hmrc.gov.uk)
A European Union Retirement Benefit Scheme (EURBS) is suitable for a range of EU countries frozen pension schemes. Similar in benefit format to a QROPS, the EURBS is specifically for pension schemes domiciled in the EEA (European Economic Area). Each case must be investigated individually and may have differing outcomes when considering a potential solution.