tax on QROPS death benefits

My father is resident/domiciled in Thailand and has a QROPS based in Gibraltar. How are death benefits from this scheme taxed? I understand that the QROPS pension pot does not become part of the estate for IHT. (Even if it did it would not fall to IHT because of him being non domiciled and the pension being an overseas pension/asset?) Are the death benefits taxed under income tax and if so would they only be taxable if received by a UK tax resident? I am NZ resident and would benefits received by myself not be subject to UK income tax? My father is 79. Thanks

Hi 

1. If the QROPS trustees make a death payment within the 10-year reporting period, they must report it to HMRC. UK law takes precedence if the individual died before 75 and within ten full and consecutive years of becoming a non-UK  resident.
2. After ten full years of non-UK residency, 100% of the remaining fund should be available to beneficiaries free of UK tax on the provision that the individual died before the age of 75.
3. However, if the individual dies within ten full and consecutive years of becoming a non-UK resident, while 75 years of age or over, under UK law, beneficiaries would pay tax at their marginal rate on any drawdown from the pension. Heirs can also receive the pension as a lump sum payment, subject to a tax charge of 45%

Thank you

Hi, Thank you for your reply. My father has been non-UK resident since 2011. (Based on an average of < 91 days over a four year period rulings at that time) The pension fund was initially transferred to an Isle of Man personal pension plan approximately 2009. It was then transferred to the QROPS in 2015. Does the time period the pension was in the Isle of Man count as part of the ten year reporting period and therefore the fund is no longer in the 10-year reporting period? If the time in the Isle of Man is discounted and the fund is still within the 10-year reporting period, is the fund free of UK tax because my father has been non-UK resident for more than ten full and consecutive years? Are all beneficiaries of death benefits taxable, should the death benefit fall to tax, regardless of the country where they reside? Thank you

Hi James811 W,
No, as it was not part of QROPS until 2015.
Thank you.