Royal Bank of Canada Employee and Executive Services (RBC Cees), has launched two Qualifying Recognised Overseas Pension Schemes (Qrops).
The Qrops are designed for individuals, but RBC Cees also provides trustee and administration services for employers wishing to establish their own Qrops.
The products, the Fermain Qrops and the Havelet Qrops, have been developed to take advantage of the announcement in April 2006 that employees with UK pension benefits who have already planned to become non-resident (in terms of the UK) for tax purposes can move their pension benefits out of the UK to a Qrops with HM Revenue and Customs’ full approval.
This enables employees to consolidate their UK pensions and offshore pensions, providing them with investment flexibility, member loans, flexible receipt of benefits, and giving them an opportunity to take a 25% tax-free lump sum on retirement along with other benefits.
Lindsey Doud, director and head of business development for RBC Cees, said: “Qrops is particularly pertinent in the current environment, as RBC Wealth Management is seeing an increasing number of enquiries from clients who are thinking about leaving the UK as a result of the 50% income tax rate announced in the last Budget.”
The Qrops are available through RBC Cees’ Guernsey offices.