QROPS - The Facts

QROPS do allow you to move a UK pension offshore
So long as an annuity has not been purchased, it is possible to legally move a UK based pension scheme offshore. However, certain rules and regulations still have to be followed.
 
QROPS do allow you to take a lump sum
As with UK pensions, you can take up to 25% of the QROPS value as a lump sum once you have reached the minimum retirement age - now 55 years old unless you have a doctors certificate stating you have had to retire early due to ill health. There is speculation that this maximum lump sum may be increased to 30% in some jurisdictions soon but this is not the case yet.
 
QROPS remove the compulsion to purchase an annuity
In most QROPS jurisdictions, there is no compulsion to purchase an annuity as there currently is whilst the pension benefits remain in the UK. However, the trustees have an obligation to use at least 70% of the pension benefits to provide an income for life. This is normally done by ongoing pension drawdown.

QROPS retirement income is tax free
This is dependent on where the QROPS is based and where you live. QROPS in Guernsey, for example, will provide you with an income with no tax at source but there may still be tax in your country of residence; if that country taxes overseas retirement income. QROPS for some other jurisdictions, such as the Isle of Man, may be taxed at source and, if there is no double taxation treaty in place, there could also be additional tax in your country of residence!   
 
QROPS benefits are passed on to my loved ones on my death
So long as no annuity is purchased, the residual value of the pension benefits pass on to your defined beneficiaries on your death.