Pluck, who is European director for the international advisory firm, argues many expats are “not taking full stock of the right scheme for their particular retirement aspirations” and, particularly as choice increases, are being swayed by attractive tax inducements.
“In particular, expats must look at the where the QROPS is based and question whether it is the best jurisdiction for them,” said Pluck.
“Unfortunately, there is a general misunderstanding among British expats that because schemes are HMRC recognised, they are also regulated by the UK’s Financial Services Authority. This is not the case. The rules that govern these schemes are those of the regulatory authorities in which the scheme is based.
“And, as we all know, regulations of any country can and do change swiftly. You might start out with a QROPS with an attractive “no withholding tax” promise, but there’s no guarantee this will remain, nor is there any guarantee that the scheme itself will remain recognised by the UK’s HMRC once the foreign jurisdiction’s government has changed its own regulations.”
