SIPP vs QROPS

As an expatriate, you benefit from being able to transfer to a QROPS as well as a SIPP but with legislation always changing it can be difficult to know which option is best for you. Let us help you clear up the differences. At the end of each year you will be awarded with a bonus depending on how the fund has performed and what the market conditions are likely to be in the future.

Frequently Asked Questions

Transfers to QROPS after the 9th March 2017 will only be subject to a 25% tax charge if both the individual and the QROPS are in a different country. This doesn’t leave many options available.

If you are unsure then a SIPP will most likely be more suitable, as the 25% tax charge will still be applicable if you move to a country outside of where your QROPS is within 5 years.

Depending on the trustee, the answer is generally yes. Most trustees offer both QROPS and SIPPs, meaning you can move from one to the other. This means that if you feel you have transferred to the wrong one, you can do something about it.

They do not. SIPPs are generally half the price of QROPS, so if you have a small pension pot it could be a lot cheaper to have a SIPP. Cost should not be the sole reason for choosing a SIPP though, as a QROPS could still be the most favourable option for you, depending on where you live and what your retirement plans are.

SIPP-vs-QROPS-SIPP vs QROPS financial planning sjb global

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Lifetime Allowance

Lifetime allowance has dropped from £1.8m to 1m in just 8 years. The way a SIPP and a QROPS is taxed on the Lifetime Allowance Tax is extremely different, and is the biggest factor for deciding which option to choose.

Gross Taxation

QROPS are paid gross of tax from the UK meaning you don’t have to file your tax returns each year to claim your tax back like you would in a SIPP. But there is a very simple way of doing this with a SIPP now also.

Regulations

QROPS can be utilised as a vehicle for high risk investments which would no longer be accepted by SIPPs as they wouldn’t pass the due diligence checks.

Invested a lump sum and transferred my pension with SJB Global last month. Happy so far and looking forward to seeing how the investments perform. I was really impressed with the process and explanation of complex terminology.

Barbera Louis

Having previously gotten cold feet after almost going through with the transferal of my UK private pension to a QROPS with another wealth management company who, for a number of (good) reasons I felt uneasy with, I decided to look independently for an alternative adviser and was fortunate to come across Sam Barber quite by chance. Thanks to his endless patience in answering all of my questions and his excellent support throughout the entire process (which seemed very daunting initially), I am now confident that my future pension is in the best hands. He has put my mind at rest over so many issues and my initial lack of trust in such financial institutions has fully dissipated since becoming his client. I have no hesitation in recommending Sam to anyone who is even just considering transferring a pension out of the UK. He will not talk you into anything that you are unsure about and no question is too stupid. He knows what he’s talking about, gives sound advice and is 100% reliable. There are without doubt many sharks out there – happily Sam is not one of them.

Alia Harrison

I transferred my pension 6 months ago after speaking with a number of advisers in relation to my enquiry. Having initially being overwhelmed with the ordeal, Sam made me feel at ease with the whole process. And on our first semi annual review I am very pleased with the performance and feel like I have made the right decision. I would recommend SJB global to any expat who is looking to transfer their pension.

Jade Bolton

I started the process of finding information out about how to transfer my UK pension overseas and got a bit lost with it all. After sending out a few inquiries, I decided to go with Jake as I found his advice and costs to be completely transparent. The other 2 advisers had recommended me a QROPS and Jake said I was best suited to transfer to a SIPP and sent me links to authoritative websites to back up his reasons. I would recommend Jake to anyone who is looking for transparent advice.

Salvador Iglesias

Invested a lump sum and transferred my pension with SJB Global last month. Happy so far and looking forward to seeing how the investments perform. I was really impressed with the process and explanation of complex terminology.

Barbera Louis

Having previously gotten cold feet after almost going through with the transferal of my UK private pension to a QROPS with another wealth management company who, for a number of (good) reasons I felt uneasy with, I decided to look independently for an alternative adviser and was fortunate to come across Sam Barber quite by chance. Thanks to his endless patience in answering all of my questions and his excellent support throughout the entire process (which seemed very daunting initially), I am now confident that my future pension is in the best hands. He has put my mind at rest over so many issues and my initial lack of trust in such financial institutions has fully dissipated since becoming his client. I have no hesitation in recommending Sam to anyone who is even just considering transferring a pension out of the UK. He will not talk you into anything that you are unsure about and no question is too stupid. He knows what he’s talking about, gives sound advice and is 100% reliable. There are without doubt many sharks out there – happily Sam is not one of them.

Alia Harrison

I transferred my pension 6 months ago after speaking with a number of advisers in relation to my enquiry. Having initially being overwhelmed with the ordeal, Sam made me feel at ease with the whole process. And on our first semi annual review I am very pleased with the performance and feel like I have made the right decision. I would recommend SJB global to any expat who is looking to transfer their pension.

Jade Bolton

I started the process of finding information out about how to transfer my UK pension overseas and got a bit lost with it all. After sending out a few inquiries, I decided to go with Jake as I found his advice and costs to be completely transparent. The other 2 advisers had recommended me a QROPS and Jake said I was best suited to transfer to a SIPP and sent me links to authoritative websites to back up his reasons. I would recommend Jake to anyone who is looking for transparent advice.

Salvador Iglesias

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