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Considering the high levels of taxation in the economic environment today, it will be music to your ears to know that a pension transfer through easyQROPS can provide a tax free pension and tax free payments to non-UK residents, subject to the taxation jurisdiction. Meaning that no UK income, inheritance or capital gains or death duty tax will apply.
A Tax Free Lump Sum
Through easyQROPS you are eligible for a 25% tax-free lump sum of your total pension fund. Subject to the rules of taxation in your chosen country of residence.
Income Tax Liability
A pension transfer through easyQROPS will ensure that, should there be a tax liability due on pension income, it will only be taxable in your country of residence, but qualify as a tax free pension in many cases. No tax is payable in those countries where a double taxation agreement has been established with HMRC, thus avoiding a double taxation issue, which, will only apply should you choose to return to the UK as a resident.
This means that if you are a non-UK resident receiving an income through your UK based pension, then UK tax rules still apply, unless a double taxation agreement has been established between the HMRC and your chosen country of residence; the consequence of this may mean that tax is levied at a higher rate than the maximum taxation band in your chosen country of residence. We will provide you with all the taxation information about your country of residence and what the subsequent impact will have on your taxation issues, clarifing the pension transfer and tax free pension issues.
It is possible, through a QROPS, to increase the value of your pension without inncurring any taxation liabilities, for example, if you have funds in your QROPS that are held in a deposit account, interest may be paid that is not subject to taxation.
Capital Gains Tax Liability
There is no capital gains tax applicable or payable on any gains received through an easyQROPS pension.
Inheritance Tax Liability
The tax liability of a UK pension upon death can be as much as 82% of the fund, should you die following the commencment of pension benefits. In most cases, however, no inheritance tax or unauthorised payment charges apply if you transfer your pension through easyQROPS.
One option available to you, for instance, is where a trust is established into which, upon death, the benefits from your QROPS,could be paid. Should you identify your spouse and/or children as beneficiaries, they should, in most cases, receive 100% of death benefits due.
We will provide you with impartial tax advice relevant to your country of residence should you need it, regarding penson transfers and tax free pensions.
If you require any further information please take the time to look at the Death Benefits section on this site.
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