Did you know that if you die after age 75 and have not taken action over your UK pensions, your estate will have to pay 55% Inheritance tax?
This is because
Unless you annuitize your UK pension fund – which could be to your disadvantage – or give it to a registered charity when you die – it will attract inheritance tax of 55% on the death of the last survivor of you or your spouse after age 75. On your death at any age, your spouse as a beneficiary, is entitled to take over the drawdown income you may have commenced already. An option to take a lump sum death benefit exists instead of the regular income alternative – but a one-time UK tax of 55% will be charged on this lump sum. These penalties can be avoided if you export your pension to a Qualifying Recognized Overseas Pension Scheme (QROPS) now.
What this means to your successors
Your younger heirs will suffer the cost of inheritance tax and your spouse will have to pay a 55% tax on her optional lump sum death benefit unless you export your pension to a Qualifying Recognized Overseas Pension Scheme (QROPS) thereby ultimately escaping the tax and pension rules in UK. You are required to have been a non-resident of UK for a period of five fiscal years (April to April) in order for your pension to qualify for these freedoms. Wouldn’t you prefer to protect your spouse and younger beneficiaries from these taxes while at the same time improving your own retirement prospects?
What you must do now
Please submit the enquiry form and authority so that a review can be prepared for you totally without charge or obligation. Our review of your UK Pensions will evaluate the benefits and recommend a QROPS approved by Her Majesty’s Revenue and Customs (HMRC). This will provide you with a safe haven for your UK pensions offering you more freedom, personal control, and a better outcome for you and your beneficiaries.
How we can help
We will prepare free projections of your existing values and benefits – and the tax and penalties they face in UK – and compare them with your pension when it is sheltered safely in a QROPS based in a desirable, UK-approved jurisdiction outside UK where you can enjoy greater investment freedom, improve your benefits substantially and start drawing them at an earlier minimum age.
Please note, the services described above are not available to current UK residents.