REGULARS
Another look at pensions
Because it is such a revolutionary change on previous pension legislation, QROPS is well worth another look for British Expatriates. For many the biggest advantage will be the ability to have income from the pension paid gross and not subject to income tax. This is especially true for wealthy individuals who may well be receiving substantial income from, let’s say, rented properties in the UK and who have a large income from a SIPP or a personal pension. With the recent UK Budget which raised the high income tax rate to 50%, a QROPS could now be instrumental in saving a lot of money for the wealthy, (even if you do not have UK property) from the dreaded taxman.
It is also a major bonus for the average British expatriate living here on private pension income. It may go some way to compensate for the recent devaluation of sterling against the baht. Here is another benefit: there is discretion over distribution of residual funds upon death of the contributor. With the old schemes on retirement you were forced to buy an annuity for yourself and possibly include your spouse which would have reduced the monthly income considerably. On your death your spouse would then receive around half the pension payment, and on her demise the fund disappeared.
Now with a QROPS all this has changed. You can pass on the residual fund to your wife, your children or your grandchildren. There is also a much greater flexibility on drawing payment. The idea is to take your pension income as and when you need it. Of course you will need approval from the trustees of the scheme but in most genuine cases there is no problem.
A big benefit for those who worry about the legitimacy of the QROPS provider is that all schemes must be approved by HM Revenue. The latter impose stringent conditions on the providers to ensure you are not transferring your life savings to some scam scheme.
After the transaction has been done it is important to note that your pension is outside the influence of the EU and any future legislative changes on pensions will not apply to your already transferred QROPS fund.
I say this because the benefits are so good that it is possible to see some future cash-strapped British government looking for ways to raise extra revenue and they could look at imposing taxes again on expatriate pensions. So that is another good reason to act now and not delay.
There are so many advantages on a QROPS it is difficult for me to understand why those who qualify would hesitate. If you are in the fortunate position to have a UK pension which you can transfer to a QROPS please contact me below. It is quite a complicated area and I am happy to answer your queries face to face or by e-mail.
To briefly outline some of the many other benefits: There is no requirement to purchase an insurance company annuity; no limit on contributions or fund size and no hidden penalties or exit charges - all assets grow free of taxation except for the sometimes unavoidable withholding tax in some jurisdictions.
Investment options available are what for some will be biggest attraction about moving to a QROPS. There is a wide range of investment options to choose from including stocks, bonds, investment trusts and life policies and non standard assets such as property, private equity and land. You can even appoint your own pension manager.
If for instance you own a company, in Thailand, which owns the property you live in or the business you have set up here, your QROPS can buy shares in that company. What that in fact can do is release large amounts of capital from your QROPS.
And finally to qualify to own a QROPS you must be an expatriate or intend to become an expatriate in the near future. You must have lived abroad for five years before you can prosper from many of the stated benefits. What in fact happens is that the trustees of the scheme are mandated to report to the UK revenue any transactions they feel are not in keeping with the spirit of the scheme. After five years there is no longer a requirement for this reporting.
As I said earlier this is a complicated area and assistance, if required, will be provided.
jerry@ariun.co.uk
Mag’s Page
In 1884, a Jewish refugee from Poland set up a penny hardware stall in Leeds' Kirkgate Market. This year marks the 125th anniversary of the shops which grew from those humble beginnings. No prizes of course for guessing that this month’s subject is that high street staple Marks and Spencer.
To celebrate its' 125 years M&S is putting its' archive collection of women's clothing on permanent display at the University of Leeds. This is a fitting tribute to a city, and a store, which have contributed so much to the clothing trade.
But it hasn't been all plain sailing. In the early 'noughties’ they almost lost the plot, falling so badly behind fashion trends for a while that it was easy to forget just how important the place has been to us ladies over the years.
My earliest memories were of the outside of our local store, with its' window displays of those awful nylon nighties, which floated down in gathers from huge frilled yokes. We never went through the doors though – we were just passing by to browse market stalls for dress fabrics. Because despite aiming it's clothing at newly liberated post-war working class women, M&S was still too expensive for many, and Mag’s Mum, along with many others, still made her own clothes.
But by the 1960's M&S was the only place to shop for an affordable - and hardwearing - working wardrobe. By then it had become a bit too dowdy to turn up for a job interview in home-made clothes. Department Store clothing was only for very special occasions. High Street choice was limited largely to Richard Shops for party clothes, and Dorothy Perkins for underwear, while Burtons was introducing its' women’s clothing departments which spawned Topshop. Even then M&S didn't provide much in the way of fashionable shoes, (and still struggle a bit in that department), footwear was the province of Dolcis and Saxone. But what Marks lacked in platforms they began to make up for with more Quant inspired dresses, and the newly fashionable trouser suit.
Less well known though is the major role played by M&S in the development of modern day artificial fibres, which we all now take for granted. They developed Orlon and Crimplene amongst other fabrics, and although we wouldn't give either house room now, at the time they were innovative, easy care, and cheap. Crimplene, with its' nubbly textured finishes and firm weave, was also a very easy fabric to sew at home, providing you didn't allow it to get too close to an open fire!
These days of course M&S also means food, and again they have pioneered change, being the first UK retailer to introduce chilled foods. Now there is a chain of small 'food only' M&S outlets catering for the ever-growing sandwich and packed lunch trade.
They introduced the avocado to the UK. But perhaps most importantly M&S sold the first ever ready-made trifle. This was a feat of sweet engineering, described recently by the man in charge of developing it as the most difficult challenge ever faced by his food production company.
Apart from keeping up with the latest berry trends, that basic trifle hasn't changed, and thankfully it has been joined by a range of other (even more sickly) puddings. They may cost a little more than in other stores, but when checkout staff in some other places pay more attention to their nails and horoscopes than to the paying customer, M&S service is still hard to beat.
So the next time you see avocado and prawns on a UK menu, you know who to blame.
Useful Telephone Numbers for Hua Hin
Railway station
032-512 770, 032-511 073
Bus station of Hua Hin
032-511 654, 032-512 543
Bus station of Prachuabkirikhan
032-601 901
Bus station of Pranburi
032-621 443
Hua Hin Hospital
032-520 401
Dog Rescue Center
0-1981 4406
Wild life Rescue Center (Tayang)
032-458 135
Department of Land Cha-am office:
032- 430 846-7
Department of Land Hua Hin office:
032-536 164, 032-512 407
Department of Land Prachuabkirikhan:
032-611 211
Department of Land Pranburi
032-622 199
Local Government (Hua Hin)
032-521 340, 532 471
Local water supply
032-511 677
The Power Board of Hua Hin
032-512 215, 032 513 165
Observer office:
032-531 078
Red Cross.
032-512 567
San Paolo Hospital
032-532 576-85
Polyclinic International
032-516 424, 032-516 425
Shell Cooking Gas
032-511 144, 032- 515 620
The Communication Authority of Thailand
(Hua Hin)
032-511 351
Rotary Club of Hua Hin
0-1916 6637
Meeting every Thursday 8.pm
at Hua Hin Grand Hotel & Plaza
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