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QROPS Vs SIPP: What’s the Difference?

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International SIPP Vs QROPS

International SIPP

  • Suitable for residents in the UK, Europe, Asia, South America & Africa
  • Suitable for residents returning to the UK in retirement
  • Internationally portable; you can keep managing your SIPP from other countries abroad
  • Transfer multiple pensions into one online account
  • 25% PCLS (Pension Commencement Lump Sum) allowed at age 55
  • Available in GBP, EUR & USD
  • Investments available in UK markets (FTSE), Germany (DAX), France (Euronext), USA (Nasdaq, NYSE) and other world stock exchanges
  • Professionally managed investment portfolios available
  • 55% tax upon death after age 75
  • 55% tax on pensions above £1.073 million
  • Flexi-access drawdown rules from age 55
  • Local taxes may apply

QROPS

  • Suitable for residents overseas in Australia, New Zealand, India & the European Union*
  • Internationally portable; you can keep managing your QROPS from other countries abroad
  • Transfer multiple pensions into one online account
  • 30% PCLS (Pension Commencement Lump Sum) allowed at age 55
  • Available in GBP, EUR & USD
  • Investments available in UK markets (FTSE), Germany (DAX), France (Euronext), USA (Nasdaq, NYSE) and other world stock exchanges
  • Professionally managed investment portfolios available
  • 0% tax upon death as long as you remain tax resident abroad
  • Suitable for larger pensions; One of the biggest benefits of QROPS is around something called the lifetime allowance (LTA). Under current UK legislation, you can only accumulate a tax privileged pension fund of up to £1.073 million. if you transfer your pension into a QROPS, it is tested against the LTA at the point of transfer, and not again thereafter. So, with a QROPS, there could be 0% tax at source on transferred amounts and any growth if under £1.073 million.
  • Flexi-access drawdown rules from age 55
  • Local taxes may apply

*The EU countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.

Where are International SIPPs based?

Most international SIPPs are based in the Isle of Man. Investments can be set up with an offshore insurance wrapper and funds can be managed by a Discretionary Fund Manager. You can manage your SIPP from anywhere in the world.

Where are QROPS based?

Residents in Europe can set up a QROPS in Malta. Residents in India can transfer to a QROPS in India. Residents in Australia can set up a QROPS in Australia. Residents in New Zealand can set up a NZ QROPS. You can manage your QROPS from anywhere in the world.