SIPPS Self-Invested Personal Pension (SIPP)

Self-Invested Personal Pensions (SIPPs) are a type of UK registered personal pension scheme and were introduced by the UK’s Finance Act 1989. Compared with conventional retirement plans, SIPPs may offer savers greater investment freedom and control. They may also afford increased flexibility at retirement.

Amongst other assets, SIPPs are permitted to invest in collective investment funds, commercial property, Exchange Traded Funds (ETFs), cash deposits, equities, corporate bonds and government bonds.

The SIPP market has evolved considerably in recent years meaning that SIPPs are no longer the preserve of the high net worth investor and have increasingly become a retail option.

It is possible for both UK residents and international clients to establish and own a SIPP.  Sovereign’s SIPP is fully interchangeable, subject to any local regulatory or receiving scheme parameters, with its range of Qualifying Recognised Overseas Pension Schemes catering fully for internationally mobile individuals.

QROPS Qualifying Recognised Overseas Pension Schemes

A Qualifying Recognised Overseas Pension Scheme (QROPS) is a name used to categorise a non-UK pension scheme that is able to receive the transfer of UK pension benefits.

In order to qualify as a QROPS, the overseas pension scheme must meet certain conditions as prescribed by HM Revenue and Customs (HMRC) in the UK. The pension scheme must also comply with the local pension’s legislation in its own operating jurisdiction.

Sovereign has been at the forefront of QROPS since enabling legislation was first intro- duced in 2006. With six schemes operating across three jurisdictions, Sovereign has one of the broadest QROPS propositions in the market place.

What are the advantages of a QROPS?

By transferring a UK pension to a QROPS a non-UK tax resident may benefit from a number of efficiencies. These include the removal of the pension from the UK tax system, greater investment flexibility, earlier access to pension benefits, multi-currency investment and the ability to pass all of the pension to any beneficiary in the event of death.

QNUPS Qualifying Non-UK Pension Scheme

A Qualifying Non-UK Pension Scheme (QNUPS) is a pension scheme based outside of the UK that qualifies for an exemption from UK Inheritance Tax (IHT).

Qualifying Non UK Pension Schemes were created by the Inheritance Tax Regulations 2010, which became effective from 6th April 2010 and add to the armoury of potential retirement planning solutions available. They are open to UK residents, including those permanently residing in the UK, and overseas residents, including UK domiciled individuals.

In particular, QNUPS are an attractive additional retirement savings plan where individuals have reached the permitted limit of their domestic pension contributions. Therefore, UK resident individuals who have already used their annual and lifetime allowances, but who wish to make further provision for their retirement, might choose a QNUPS.

QNUPS may also provide attractive pension planning for non-UK resident and non-UK domiciled individuals who may decide to move to the UK, or UK expats who may wish to return to the UK in the future.

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Tel: +350 200 76173

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