Abacus Launches Bespoke IoM QROPS Scheme
Wednesday, September 14, 2011
Leading fiduciary services provider, Abacus Trust Company Limited, has announced
the launch of their new Isle of Man Qualifying Recognised Overseas Pension Scheme
(QROPS) product, which offers certain tax advantages to UK expats or British
residents considering leaving the UK.
The Douglas-based fiduciary and fund services specialist says that its bespoke
QROPS for individuals is designed to be flexible yet fully compliant with Isle
of Man and UK legislation, enabling the transfer of personal and company
pension funds to an overseas pension fund.
The Isle of Man QROPS is an innovative scheme, derived from the Manx government’s
creation of the Section 50C legislation. The Scheme offers significant advantages
for approved pensions, namely; no tax charges on any income and gains generated
within the pension fund or on pension benefits paid to non-residents of the
island; the ability to take a 30% lump sum withdrawal on retirement, and potentially
more, including the growth on funds transferred into the QROPS; flexibility
in the withdrawal of benefits – the pensioner can choose income drawdown,
(avoiding the need to purchase an annuity) or alternatively can leave the funds
intact if there is no income requirement; and no tax charges on the death of
Andrew Cardwell, Tax Director at Abacus Trust Company Limited, said: “There
are many providers currently offering master trust type arrangements in the
Isle of Man; however our QROPS is an individual pension arrangement, which retains
the freedom of investment and control currently enjoyed by investors in their
existing SIPPs and SSASs."
Abacus Trust Company Limited is licensed to provide a full range of administration
and fiduciary services to support their QROPS product and acts as both trustee
and administrator of the QROPS arrangements.
Abacus says that its fee structure is "competitive" and reflects
the bespoke nature of its QROPS products. As an independent firm, Abacus does
not accept commissions or other financial incentives from organizations wishing to
do business with the firm, it said.
Alistair Stewart, Director, Abacus Fiduciary Services Limited, UK, commented:
“Choosing the right location for a QROPS is essential. The Isle of Man
is an offshore financial centre, internationally recognised and respected as
a jurisdiction of excellence. Having reformed the QROPS landscape with its new
pension legislation, the Isle of Man is fast becoming one of the leading jurisdictions
in this arena with the island’s QROPS considered an innovative scheme,
offering significant advantages for approved pensions.”