The Falklands Islands Pensions Scheme (FIPS) has gained approval from HM Revenue & Customs to gain status as a Qualifying Recognised Overseas Pensions Scheme (QROPS).
This gives members of the FIPS the opportunity to transfer any existing pensions they have held in the UK over to their Falklands fund with no tax penalties. The qualification has been celebrated by the Falklands Islands Pension Board as it sees this as a glowing stamp of approval for the financial system in the British colony from the UK.
QROPS Big in USA
QROPS are currently experiencing a huge surge in popularity across the Atlantic, as residents of the US are finally finding they too can benefit from transferring their UK-based pensions. It was previously seen as impossible to get a UK pension into the US without severe penalties, but the option does now exist, and thousands of British expats in the States are utilising the schemes recently designed specifically for use if retiring in the USA.
QROPS offer the following benefits for those with UK pensions, but who live overseas and plan to retire away from the UK:
- No risk of depreciation due to currency fluctuations when pension is drawn
- Not subject to UK tax (high rates of Income tax, Inheritance Tax and Death Tax)
- Complete control over investment strategy
- Up to 30% lump sum completely free of local tax
- Potential for earlier retirement