Retired expats 'could avoid tax and restrictions on UK pensions'

Thursday December 11th , 2008

British retirees who live abroad with private or work pensions in the UK can take advantage of a "Qrops" trust structure, which offers more freedom in investments and could save on tax, it has been claimed.

The Connexion, an English-speaking newspaper for people living in France, has reported that people living abroad can hold their pensions in Guernsey-based Qrops, which stands for Qualifying Registered Overseas Pension Scheme.

According to Mike Brown, a director of Guernsey-based trust firm Confiance, people need to take expert advice as they are complicated and not suitable for everyone.

He said: "If you want to avoid the tax and investment restrictions in England, moving it to another country with tax and investment restrictions is pointless.

"Guernsey is tax-neutral and investment criteria are very broad."

UK rules apply to the pension until five years after the person moves abroad.

Meanwhile, property in southern Italy has been tipped to surge in popularity despite the credit crunch.

According to themovechannel.com, property expert Dennic Onstenk said beach front properties could be bought for less than half of the average price of a home in the UK.
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