Qrops Pensions Isle Of Man
Searching for the right place as a home for QROPS is a good way towards a safe and sound investment with one of the best places to begin being the Isle of Man.
As an offshore financial centre, the Isle of Man provides good stability along with low taxes for many individuals and businesses.
Other tax havens promise more but often fail to deliver consistent stability and performance to match this island.
For QROPS pensions the Isle of Man is second to none, it shows how the world of finance can still offer forgotten virtues like honesty, trust and good customer service.
Benefits Explained For 50C Pension
The Isle of Man is once again set to lead again by example concerning offshore pensions with new 50C regulations. These regulations are well received with a new overhaul of QROPS that provides Isle of Man pension members with the following:
- Up to 80% of the fund value available for tax-free drawdown on retirement
- Lump sums, pensions and benefits paid gross
- Low income tax and no capital gains tax or inheritance tax
These features took effect as a quick reaction to the challenge of other markets after companies tried to tempt UK ex-pats to put their money into these funds. The 50C pension legislature actually came into effect on 22nd October 2010.
The Isle of Man government and financiers quickly realised that a risky manipulation of QROPS rules failed to deliver the correct solutions. They responded to this by stripping the QROPS down and re-building a state-of-the-art solution from scratch.
This means that anyone who has a UK pension and has left the UK or intends to do so, can be assured that their hard-earned investments are safe and accessible, while gaining in value in a low tax environment until required.
The Isle of Man QROPS revamp makes a larger share of the fund available as a tax free drawdown with added bonuses of pension payments paid gross. Now that the government has scrapped the view of low tax being a privilege for non-residents, it has extended the island’s low tax culture to everyone.
For more information, visit the HMRC website here.