Taking benefits
When the time comes to draw down on your Liberty QROPS there is no requirement to purchase an annuity or Alternatively Secured Pension – ASP. In addition, the opportunity is available to have a tax-free, lump sum payment (presently up to 25% of the value of your pension scheme at that time).
Regular income payments, the amount of which is determined by a standard actuarial calculation, can be made to suit your circumstances. This means that payments can be made in virtually any currency and, if required, in specie.
A number of options are available for the distribution of the assets remaining in your Liberty QROPS on death. Because the scheme has not purchased an annuity the residual funds will be available to your selected beneficiaries. Cogent Limited, the Liberty QROPS trustee, has extensive experience in family and estate planning and can assist with establishing tax-efficient ownership structure.
So long as you have been a non-resident of the UK for at least 5 complete tax years then potentially punitive UK tax charges will be avoided. This includes the 35% charge on a residual USP - unsecured - pension prior to age 75 and the 82% charge for an Alternatively Secured Pension – ASP – where you die after age 75.
Liberty QROPS is HMRC approved.