1. What is QROPS transfer?
QROPS is the acronym for Qualifying Recognized Overseas Pension Scheme. This refers to the transfer of overseas pension funds in the UK - that have been approved by the UK Government (Her Majesty’s Revenue Customs) - completely tax-free to the various pension schemes in India registered under QROPS.
The QROPS transfer scheme was launched in 2006. Absolute clarity on what is QROPS is the key to getting your UK pension transferred in India. The QROPS transfer scheme ensures smooth transfer of your funds from the UK to India.
2. What are the advantages of QROPS plans?
QROPS benefits are:
1. Receive pension and other benefits in Indian Rupees.
2. It can help avoid currency exchange rate fluctuations
3. Benefit from better appreciation opportunity
3. Who can transfer their pension into a QROPS?
Anyone having contributed into a Registered Pension Scheme in UK can transfer their fund into a QROPS. Whether the transfer can happen without tax charges depends on where the QROPS is established and which country the pension holder resides. You must speak to our experts to get more details. Click Here!
4. Can UK pension be transferred to India?
Pensions can be transferred into a QROPS in India. India has a tax system and regulatory system which is broadly similar to that of UK and hence India as a jurisdiction is favorable destination for UK pension transfer. Exide Life Golden Years Retirement Plan very well suits an Indian, NRI or Person of Indian Origin (PIO) to transfer their UK Pensions to India.
5. Which is the best QROPS in India?
Exide Life Golden Years Retirement plan has been the most popular QROPS in India since 2013. Exide Life Insurance has a dedicated department specialized in pension transfers, who can provide with complete required information for clients wishing to transfer their UK pension. Our expertise is gained by our experience in managing more than 1000 Crores assets under management in Pension transfers from UK / Ireland into QROPS in India.
6. Are you eligible for Transfer?
If you have an occupational (work place) pension scheme, final salary scheme, defined benefit (DB) pension scheme, a SIPP (self-invested personal pension), SSAS (Small Self-Administered Scheme) or defined contribution (DC) pension scheme in the UK and you are leaving the UK to live in India or thinking of leaving UK, you are entitled to transfer your existing UK pensions to a QROPS with Exide Life Insurance
7. Can I take 100% of my QROPS fund as a lump sum?
No, as your retirement fund needs to be able to provide income for you for the whole of your retirement, HMRC has set the lump sum limit to 25%.
8. I may go back to the UK in the future, can I still benefit?
If you transfer your fund into a QROPS and return to the UK after five years, there is no obligation to transfer your fund back to the UK or pay any additional tax in UK. You may have significant tax advantages by remaining invested in India and avoid Inheritance Tax on the death benefit. India has a double taxation agreement with UK and hence there is no need to pay the taxes twice.
9. I have a UK SIPP and I have already drawn some income – can I benefit?
Even if benefits have already been taken, you can transfer most registered UK pension schemes into a QROPS. A QROPS can be described as an advanced SIPP – in that it allows you all the same investment freedom but the ability to base your pension outside of the UK.
10. I have already transferred my QROPS to Malta. Can I transfer it to India, Exide Life QROPS?
Yes you can and it is a very straightforward process. You don’t need to inform your current adviser, they will be informed automatically by your QROPS trustees. Many QROPS holders have switched from Malta Schemes to India, as the Exide Life QROPS offers certain guaranteed returns.
11. Do I have to pay tax on lump sum payments and income payments from QROPS?
You are eligible for up to 30% of the corpus in lump sum on retirement after age 55 which is tax free in India. What income tax you will pay on pension received from QROPS will be dependent up on the amount of Pension received. Exide Life as per the current income tax rules will not deduct any income tax at source when the pensions are paid.
12. Who regulates QROPS?
The QROPS in India is a pension policy offered by a Life Insurance Company and also meeting certain requirements prescribed by the HMRC, UK. Such QROPS are regulated by the respective Insurance Company and the Insurance Regulatory and Development Authority of India (IRDAI).
13. What is the overseas transfer charge in relation to QROPS?
The Overseas Transfer Charge is a 25% tax charge on transfer that became effective from the Spring Budget, 2017 (9th March 2017) which may apply to transfers where the member arranging the transfer, and the QROPS, are not resident in the same country. This 25% charge could be refunded back to the member if they became resident, within 5 tax years, in the same country as the QROPS transferred to.
14. Do I have to live outside of the UK to transfer my pensions into QROPS?
You can transfer your pension into QROPS even while residing in UK. QROPS with Exide Life Insurance can provide a higher growth in your funds on a guaranteed platform and in a tax efficient manner. For those whose pensions are likely to breach the Life Time Allowance, in the future, transferring their pension pot into QROPS now can provide significant tax benefits.
15. When can I access benefits from Exide Life QROPS
Any benefits can be paid from a QROPS in India to the policy holder, after they attain age 55. Usually a lump sum of up to 1/3rd is paid in tax free lump sum and the balance 2/3rd is utilized to pay the policy holder with a guaranteed pension for life.
16. Can I transfer my UK State Pension to a QROPS?
It is not possible to transfer a UK State Pension entitlement. Also the amounts contributed only towards National Insurance (NI) cannot be transferred.
17. Can multiple pensions be transferred to a QROPS?
You can transfer pensions from your various pensions to consolidate multiple pensions within a QROPS.