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 the pensioner.
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.”