Case Study - Mrs Brown's Boys
Case Study: - 'Mrs Brown's Boys' and how QROPS saved the Day!
Mrs Brown, a 68 year old expat who has lived and been resident for tax purposes in Spain for the last 13 years, is currently in drawdown with a current fund value of £600,000. As the income she withdraws from her SIPP is paid to her gross, she chooses to declare this income in Spain, and pays Spanish income tax at the current rate.
She has two grown up sons, both of whom live in the UK.
When first asked whether Mrs Brown would be better off in a QROPS, her Adviser's initial response was that as she was currently being paid gross, coupled to the adviser's concerns that QROPS were both 'expensive and unregulated', she would be 'no worse off by choosing to remain in her SIPP'.
The case study shows two scenarios. The first of these outlines the actual outcome which resulted from the decision to transfer Mrs Brown's fund into a QROPS; whilst the second outlines the very different outcome which could have resulted, had a decision been made to leave the fund in drawdown, within her existing SIPP instead. Download the attached PDF to read more.