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Gibraltar Clarifies Tax Position Of UK Pensions

Tuesday, November 8, 2011

The Gibraltar government has dismissed the possibility that the authorities could enter into an agreement with the UK government to allow Gibraltar residents in receipt of a UK pension to receive tax exemptions now available on Gibraltar pensions.

Following the abolition of tax on pension income by the Gibraltar government, people who live in Gibraltar and enjoy a Gibraltar old age pension or an occupational pension from a Gibraltar employer receive their pension tax free.

There are a number of people resident in Gibraltar who enjoy an occupational or old age pension in the UK and upon which they are liable to tax in the UK under UK tax laws.

The government has underscored that the Gibraltar government can do nothing about UK tax liabilites. It noted a number of public and private representations that the government could enter into a Double Tax Agreement with the UK so that Gibraltar residents could receive their UK pensions free of UK tax when receiving them from Gibraltar.

Responding to the proposal, the government stated:

“There is no merit in this view, which is incorrect. As the term 'Double Taxation Agreement' itself suggests, these agreements are entered into to avoid double taxation, that is to say the same income suffering tax twice, i.e. in both countries. No country, and certainly not the UK, would enter into a Double Taxation Agreement with Gibraltar to allow pension income that is taxable in the UK under UK law to be paid free of UK tax to a country (like Gibraltar) where it would pay no tax (because we do not tax pensions)."

“These issues have already been covered in discussions between Gibraltar and the UK Treasury relating to the exportation to Gibraltar of UK pension schemes,” the government said. “Nevertheless the government would be happy to work with the Pensioners Association, and approach the UK government, in pursuit of any avenue that lawyers advise is open.”

“For example, it may be possible to argue on behalf of Royal Gibraltar Regiment pensioners that even though their pensions are paid by the UK, they should be treated as Gibraltar pensions (like the pensions of other Ministry of Defence employees in Gibraltar) because the job that earned the pension was carried out in Gibraltar. Such an argument would run counter to long established practice, but it may nevertheless be worth exploring.”

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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