Qrops Pensions Gibraltar
Gibraltar has had to tread an awkward path before finally sorting out the opportunity to run QROPS pensions from the UK’s taxman.
For many months, Gibraltar’s QROPS providers self imposed a pension transfer ban as HM Revenue and Customs threatened to withdraw their QROPS status as the terms and conditions of their pension schemes apparently failed QROPS legislation compliance tests.
HMRC claimed Gibraltar’s zero per cent tax rate on pension payments was not really a tax but an SOP to meet the necessary compliance.
Gibraltar’s pension providers claimed however that the nought per cent rate was a tax so after months of huffing and puffing with HMRC, the government finally agreed to amend the state’s tax legislation to meet QROPS’ rules.
This has allowed QROPS’ providers to lift their ban and begin to start trading again.
Any QROPS transfer to Gibraltar now thoroughly meets HMRC’s rules.
Gibraltar Provides A Low Offshore Tax Financial Centre
Throughout the disagreement Gibraltar kept QROPS status and remained on the QROPS listings.
Gibraltar is certainly an appealing offshore financial centre with many British ex-pats. Its historical ties, common language, low tax and stable government are a few of the reasons why Gibraltar is still attractive.
Many ex-pats relocate and retire to Gibraltar for these reasons despite some political difficulties with neighbouring Spain.
Individuals can set up QROPS pensions in Gibraltar to take advantage of the low tax environment and like other QROPS the rules allow them to live wherever they want across the globe.
Gibraltar’s QROPS offers all the advantages of other QROPS, for instance a 25% tax free cash lump sum as well as flexible investor opportunities. There is also no obligation to purchase an annuity or other alternative secured pensions (ASP).
Income tax on Gibraltar’s QROPS benefits depends largely on where the person receiving the cash lives and of course their nationality.
Gibraltar’s QROPS pay out gross benefits in numerous major currencies, for instance the Euro and the US dollar.
Although the 25% lump sum is tax free, regular pension benefits are however subject to income tax at the usual rates in the country where the scheme holder resides.
Gibraltar Tax Rates More Than Rival Other Offshore QROPS
Tax rates on fund growth are very competitive with rival offshore centres such as the Isle of Man and Guernsey.
For more information, visit the HMRC website here.