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So you’ve made the marketing research, business plans are looking good, and so you’ve have decided that France will be your next big market
Launch your company or raise your performance in your targeted Asia Pacific market.
David Clive Price offers companies insider knowledge and strategies of how to optimize global business operations and build brand recognition in Asian markets
In 2014, the face of global enterprise continues to change rapidly. The signs are everywhere: This year, the fastest-growing economy is expected to be Mongolia’s, at a rate of 15.3 percent.
We work in an ever smaller world. The rise of global supply chains means that, whether your new business is involved in retail or manufacturing, the chances are your regular shipments and deliveries will involve products or parts from a number of different countries and probably continents.
The growing popularity of pension transfers is evidence of the tremendous benefits that can be had by doing so.
The right to transfer your pension benefits from the UK to an approved overseas location was created by legislation in 2006 but it is only recently that the price and availability of suitable overseas schemes have developed sufficiently to give them broader appeal.
So who should be considering transferring their pension funds and why?
Simply put, everybody who has retained pension benefits in the UK should review their existing schemes and compare them with the benefits available through a Qualifying Recognized Overseas Pension Scheme (QROPS) before deciding whether or not to transfer them. The possible advantages in transferring your pension(s) could prove to be considerable including:
No compulsory annuity purchase: that’s right, you will never be forced to purchase an annuity unless you want to.
From age 55 up to 25% of your fund can be taken as tax free cash!. If you are aged 55 or over now and transfer your UK pension fund(s) you can take a tax free lump sum straight away.
Tax free income. Pension benefits are payable without any tax being deducted. However, you may be liable for tax in your country of residence.
Improved death benefits: After your death your fund remains fully intact so that the remainder can be enjoyed in full by your spouse and after them, your children.
Choice of currency: Benefits can be taken in any currency and modified to suit any change in circumstance.
Consolidation: you can pool numerous small and seemingly insignificant pension plans into one meaningful sized fund.
Personal investment management: You can appoint your own professional asset manager to manage your pension fund for you.
Security: Move your money away from troubled UK company schemes where five FTSE 350 companies including BA, Trinity Mirror and BT have deficits that exceed their market capitalization.
What if I fully intend to return to the UK?
In this instance a QROPS may not be suitable because once you are a UK resident again your pension is liable to UK rules. However, you could transfer your UK pensions to a UK Self Invested Personal Pension (SIPP) instead.
The principal differences between a QROPS and a SIPP are that benefits taken from the offshore plan are not subject to tax at source (but maybe in your country of residence) and that upon death, the UK pension fund could be subject to tax at 35% whilst the offshore pension fund can be received by your surviving partner tax free.
For many expatriates the advantages of transferring to a QROPS (or if appropriate a SIPP) will prove compelling so ,why not ask us to prepare a comprehensive report for you in which we will compare the differences between your current retained UK pension benefits and those available to you via a pension transfer.
Remember, it won’t cost you a penny to find out but it could transform your financial future!