GIBRALTAR QROPS & QNUPS PENSION GUIDE THE SMART WAY TO A WEALTHIER RETIREMENT

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1 GIBRALTAR QROPS & QNUPS PENSION GUIDE THE SMART WAY TO A WEALTHIER RETIREMENT

2 Why Us? We are expats just like you. We are familiar with the challenges you face when you move to or live in a foreign country. We understand that securing your financial future ranks highly in your list of priorities. You want peace of mind. You value certainty. You seek a reliable financial provider. We We are are affiliated to to Gibraltar s oldest oldest legal practice, legal practice, Isolas 1892, Isolas established 1892, established more than 125 more years than ago. 125 We years believe ago. in We the believe positive benefits in the positive that continuity benefits and that close continuity personal relationships and close personal bring. relationships bring. We know you are anxious to make the right choices and take advice from people you can trust. That s exactly how we feel. We understand the importance of building long term relationships and are motivated by a desire to make a real difference to your financial future as well as those of your loved ones. We want to help you achieve your financial objectives by developing a deeper understanding of your requirements and taking a genuine interest in your financial affairs. We established a financial services practice because we are passionate about serving the British expatriate community. We too share your frustrations at the practices adopted by some advisers. We too are determined to challenge the status quo. What we love about our company is that we think and act differently. We have a great desire to change the face of financial services by overcoming the large disconnect that exists between the expectations of the expatriate community and actual service delivery. We want to shake up financial services for expatriates by solving client problems in a more intelligent way. We genuinely want to help people the best way we can. We believe in long term mutually beneficial relationships based on the principle of winwin. If what we have said has touched you deep inside. If you share our beliefs and value our service. If you are interested in working together for the common good. If you feel we are the right company to support you; then please make contact. 2

3 What Do We Offer? We are specialists in helping you create, preserve and transfer your wealth in a tax efficient manner to your loved ones. We offer a suite of products and services all of which support these three key objectives. It s very simple really. We seek to optimize tax efficiency in order to help you build, protect and pass on your wealth to the next generation. You want the same level of advice as you might receive in the UK with the added factor that your adviser understands pension regulations and tax rules in both the UK and the country you are moving to. You want and expect complete transparency when it comes to costs and charges and you want to know which is the BEST option for YOU, whether to leave your retirement assets in the UK or move them to an offshore pension scheme. We have helped many clients who have been badly advised to move their UK pensions to QROPS and have had their pension funds decimated by being recommended to invest in high risk, unregulated and illiquid funds. Our specialist pension knowledge combined with our highly regarded investment management capability means we cover the two essential ingredients of successful retirement planning, tax optimization by having the most effective scheme coupled with excellent long term investment performance. The questions you need answering: 1 Do I qualify for QROPS? 2 Should I move my pension abroad? 3 Will I be better off with QROPS or SIPP? 4 Can I move my company scheme? 5 How will pension freedom affect me? 6 What will be the cost of setting up a QROPS? 3

4 What is a QROPS? QROPS is a qualifying recognised overseas pension scheme that has met the criteria laid down by HMRC and is recognised and listed as such. In 2006 ( A Day) the UK Government dramatically altered UK pension rules allowing for the first time an opportunity for expats or those in the process of exiting the UK to transfer their UK pension into an overseas plan. From that day QROPS was born enabling UK expats to move their pension away from the UK without tax deduction and with no future UK tax liability. The QROPS landscape has evolved dramatically since A Day although new rules announced in the Spring 2017 UK Budget threaten the exisitence of QROPS once the UK has exited the single market. A transfer tax of 25% has been imposed on all transfers to QROPS outside of the EU, save for those where the scheme and the member are in the same jurisdiction, which is prohibitive. Post Brexit if this tax applied to transfers within the EEA the rationale for transferring to QROPS would be lost. It is therefore imperative that you consider your options well before the Brexit deadline. Why Gibraltar QROPS? QROPS come in all shapes and sizes with many jurisdictions providing schemes recognised by HMRC. Gibraltar QROPS are taxed at source at 2.5% making them particularly attractive for local residents. Although there are no current plans for Gibraltar QROPS to apply the flexible benefit regime available in the UK the jurisdiction remains a popular choice by offering a straightforward retirement planning solution for expats. The tax you pay when you move your pension to QROPS will depend on where you pay your taxes. Our expert advisers will be able to guide you in respect of the tax due on your QROPS income when they know where you are going to be resident. In our experience we know that you will have accumulated your pension fund in order that it will provide for your income needs in later life. Careful planning is needed to ensure that your fund will survive as long as you do and hopefully there might be something left over for your dependents. Can I Move a Final Salary Scheme into a QROPS? Yes you can although whether that will be the best advice for you will depend on many factors. Of course, QROPS can provide more flexibility than a final salary pension scheme ever can but whereas a final salary scheme will provide guaranteed benefits the return from all other pensions depend on the performance of the underlying investments. In many cases, but not all, the guarantees offered may well outweigh flexibility. As part of the pension review process, one of our pension specialists will thoroughly investigate the benefits offered by your final salary arrangement and compare these with an appropriate QROPS option to make sure that the right decision is made for you. 4

5 Can I Consolidate a Number of UK Pensions? Yes, it is possible to bring together all of your existing pension arrangements (except for state benefits) and hold them together in one QROPS. This will simplify your pension arrangements and allow you to draw retirement income from just one source. Can I Consolidate UK Pensions Without the Need for QROPS? Yes, if we agree that QROPS is not the most suitable vehicle for your pension funds then we can put all of your existing UK pension funds into one scheme within the UK. We will determine the best solution for you, be that transferring to a QROPS or consolidating pensions into one single UK scheme. Can I Avoid the New Death Tax Charge by Switching to QROPS? New rules mean that if you die after the age of 75 your beneficiaries can pay tax of up to 45% before receiving the remainder of your fund. If you move your pension fund to a QROPS then after ten complete tax years outside of the UK this rule will no longer apply and your chosen beneficiaries can receive all of your remaining fund without suffering this UK tax liability. Will the new lifetime allowance apply if I move to QROPS? Successive UK governments have reduced the lifetime allowance which now stands at 1M (any fund amount over this figure is subject to a penalty tax of potentially 55%). If you move your fund to a QROPS growth over and above the LTA will not be penalised in this way. Will you Manage my Pension Assets on my Behalf? Yes. Most QROPS rules require the underlying investments to be managed by a third party advisory firm. Fiduciary Wealth offers a proactive investment advisory service which is second to none. Portfolios are carefully constructed and managed using best in class funds with top tier performance. You can rest assured that your pension funds are in good hands. TALK TO OUR TEAM London Spain Gibraltar Portugal

6 What is a Gibraltar QNUPS? A QNUPS (qualifying non-uk pension scheme) is a special scheme which accepts the transfer of non pensionable assets into a bona fide pension scheme from which income can be drawn with the same minimal tax deduction of 2.5%. One significant current advantage of QNUPS is that of providing a shelter from UK Inheritance Tax. Many UK expatriates do not realise that they remain UK-domiciled, and therefore subject to UK Inheritance Tax (IHT) on their worldwide estate at a rate of 40 per cent after allowances. This can come as a major shock and can severely impact passing assets across generations. QNUPS can provide an immediate shelter from UK IHT even if the pensioner were to return to the UK. Will You Give Me More Than QROPS & QNUPS Advice? We provide all of our clients with truly holistic financial planning advice rather than adopt a one off transactional approach to your needs. By trusting your retirement planning to one of our professional advisers you will receive this additional service and advice FREE of charge. Fiduciary Wealth is not a faceless name nor an internet only company where your details may get passed from pillar to post, you will be dealing with real people whose skill and knowledge is built around looking after the pension needs of British expatriates like yourselves. Affiliated to Gibratar s oldest legal practice Isolas 1892 and with an FCA authorised office in the UK, a Head Office in Gibraltar, offices in Spain and Portugal and services provided to clients across Europe and beyond you will be dealing with a properly regulated company which places your interests at the centre of everything we do. IS A GIBRALTAR QROPS OR QNUPS RIGHT FOR YOU? PENSIONS LEGISLATION IS COMPLICATED, FULL OF JARGON AND PROBABLY NOT WHAT YOU WANT TO SPEND YOUR TIME WORRYING ABOUT. Allow us to review your current pension arrangements and provide you with expert retirement planning advice to find the most appropriate solution to meet your own personal circumstances. CALL US ON: AND BEGIN THE JOURNEY TO A WEALTHIER RETIREMENT. 6

7 Many of our clients love our company for being different and have been touched by our passion to make a real difference to people s financial futures Andrew Hosking has been our financial adviser for more than 10 years, so when he introduced us to Fiduciary Wealth at the beginning of 2012 we were more than happy to continue to deal with him. His expert knowledge of pensions and investments has been critical to our retirement planning and he continues to deliver excellent results regularly reviewing our portfolio and re allocating funds. G.M., Spain I was immediately impressed with the company s knowledge and honesty in discussing what I could, and could not do with my Pension Pot. Therefore I decided to ask Fiduciary Wealth to manage it for me. Two years on I can safely say it was probably the best investment decision I have made so far. My portfolio has grown way beyond the standard interest rate and this with a balanced risk portfolio. The service so far has been excellent, the company keeps me regularly informed on the status of my Portfolio. If I have any queries they are dealt with quickly and professionally. I would unreservedly recommend Fiduciary Wealth Management. J.R., Spain It is refreshing to experience good old fashioned personal service from a company that is respected for its integrity, trust and honesty. I have received quality advice. Fiduciary Wealth is a proactive advisor firm that is always seeking the best results for its client in a professional but personal way. Regular reviews of performance and strategy guidance are standard practice along with total transparency so I know exactly how my funds are performing. It is good to know that my investments are in safe hands with a well-established, totally trustworthy wealth management company. G.R., Spain CONTACT US CALL US TODAY ON:

8 Talk to our Team This is your opportunity to have a thirty minute consultation at our expense to discuss the financial issues affecting you and how we might help you resolve them. You can contact us on any of the following numbers or by enquiries@fiduciarywealth.eu London Gibraltar Spain Portugal Regulated by the Gibraltar Financial Services Commission - Licence No. FSC00962b. This guide is provided for general information only and the information contained herein should not be acted upon without professional independent advice. Fiduciary Wealth accept no responsibility for any loss occasioned to any person as a result of or in consequence of action taken or refrained from in reliance of the contents herein. Not all of the services referred to in this document are regulated. 8