After several years of uncertainty HMRC has given Gibraltar the green light to introduce QROPS
London, UK (Pryce Warner International) September 5th, 2012 - QROPS, an Expat pension service, have now been approved by Gibraltar's parliament. HMRC had initially raised concerns over Gibraltar's 0% tax on pension income for residents over the age of 60, but after a change to this law made by Gibraltar's parliament HMRC have approved QROPS.
Gibraltar’s Association of Pension Fund Administrators commented: “a senior HMRC official confirmed [that] ‘there is no HMRC objection to Gibraltar QROPS commencing or resuming the acceptance of transfers from UK registered pension schemes’”.
Steven Knight, GAPFA chairman, elaborated: "We have been confident that Gibraltar's schemes for imported pension schemes are fully compliant with the UK's intention to ensure that the majority of any fund is used solely for providing an income for life in retirement, and this official HMRC endorsement has made worthwhile our past voluntary suspension of activity in this area".
One of the reasons that Gibraltar has had its QROPS approved while jurisdictions like Guernsey have been struck off, is that Gibraltar is considered a member of the EU for most things, including financial services. According to the most recently published HMRC list of QROP schemes, Gibraltar now has 10.
GAPFA is also close to finalising a Code of Practice that will be compulsory for all of the organisation’s members to agree to, in order to ensure a rigorous code of practice. It has been liaising with both the Gibraltar government’s tax office and the territory's pensions regulator, and vowed that it would “bear in mind continuing HMRC requirements”.
By Aneil Fatania
Pryce Warner International Group
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