_The UK tax man has closed the door on consultation over new QROPS rules aimed at
stamping out abuse in some jurisdictions.
Panic has gripped providers and advisers in some QROPs jurisdictions since the
proposed changes were announced before Christmas.
The reality is some providers may have to shut up shop because their products will
not stand the test of the new rules - but anyone who has already transferred a UK pension pot offshore does not have to worry about their retirement
savings.
In the interests of fairness, HM Revenue and Customs is not adopting retrospective
legislation, so any funds already in a QROPs when the new rules start on April 6
are safe and no penalties or other charges will be imposed by the tax
man.
The industry is speculating wildly over the likely pension jurisdiction winners and
losers, but the truth is no one knows at the moment, as behind-the-scenes work
arounds are hotly in smoke-filled rooms.
Guernsey, the QROPS destination of choice of many third party pension savers has already come up with a plan to change the island’s pension rules to match the QROPs
proposals. The Channel Island’s parliament is ready to rubber stamp them in March.
The new pension regime on Guernsey beats the biggest stumbling block for most QROPS
jurisdictions - how to equalise tax on payments for residents and non-residents.
At a swipe, Guernsey has resolved the problem by scrapping tax on pension payments
for everyone. Other jurisdictions may not be so flexible in changing their tax
laws in time.
Malta and the Isle of Man are likely to be QROPS winners as well -the George Cross
island is in the European Union and has tough pension regulation to give confidence to HMRC that QROPS providers are playing by the rules.
The IoM is not in the EU, but has a respected financial standing and a long-standing
positive relationship with the UK tax authorities.
New Zealand is another matter. NZ QROPS are seen by the industry as short-term
solutions for early encashment - which puts them fairly in the sights of HMRC’s
tax avoidance task force.
Whatever happens from April 6, QROPS will continue to offer a solid offshore investment advantage to UK ex pats.
The choice of QROPS offshore centre changing is a lesser blow for investors than providers and advisers who face losing their cash flow overnight while playing by stricter rules.
stamping out abuse in some jurisdictions.
Panic has gripped providers and advisers in some QROPs jurisdictions since the
proposed changes were announced before Christmas.
The reality is some providers may have to shut up shop because their products will
not stand the test of the new rules - but anyone who has already transferred a UK pension pot offshore does not have to worry about their retirement
savings.
In the interests of fairness, HM Revenue and Customs is not adopting retrospective
legislation, so any funds already in a QROPs when the new rules start on April 6
are safe and no penalties or other charges will be imposed by the tax
man.
The industry is speculating wildly over the likely pension jurisdiction winners and
losers, but the truth is no one knows at the moment, as behind-the-scenes work
arounds are hotly in smoke-filled rooms.
Guernsey, the QROPS destination of choice of many third party pension savers has already come up with a plan to change the island’s pension rules to match the QROPs
proposals. The Channel Island’s parliament is ready to rubber stamp them in March.
The new pension regime on Guernsey beats the biggest stumbling block for most QROPS
jurisdictions - how to equalise tax on payments for residents and non-residents.
At a swipe, Guernsey has resolved the problem by scrapping tax on pension payments
for everyone. Other jurisdictions may not be so flexible in changing their tax
laws in time.
Malta and the Isle of Man are likely to be QROPS winners as well -the George Cross
island is in the European Union and has tough pension regulation to give confidence to HMRC that QROPS providers are playing by the rules.
The IoM is not in the EU, but has a respected financial standing and a long-standing
positive relationship with the UK tax authorities.
New Zealand is another matter. NZ QROPS are seen by the industry as short-term
solutions for early encashment - which puts them fairly in the sights of HMRC’s
tax avoidance task force.
Whatever happens from April 6, QROPS will continue to offer a solid offshore investment advantage to UK ex pats.
The choice of QROPS offshore centre changing is a lesser blow for investors than providers and advisers who face losing their cash flow overnight while playing by stricter rules.
RSS Feed