Wednesday, June 29, 2011
Pensions written under Isle of Man 50C pensions legislation are now appearing on the list of Qualifying Recognized Overseas Pension Schemes (QROPS) shown on the UK tax authority's website, following completion of a review by HM Revenue and Customs (HMRC). The announcement further strengthens the Isle of Man as a leading QROPS jurisdiction.
The Isle of Man has a long history of providing international pensions, and is now able to complete its suite of retirement solutions products aimed at the internationally mobile. With 23 registered pension providers, the Isle of Man has over 650 international schemes and a similar number of Isle of Man-based schemes, of which 170 appear on HMRC’s QROPS list.
According to the Association of Pension Scheme Providers, this experience, together with dedicated pensions legislation and a dedicated Pensions Regulator (the Insurance and Pensions Authority), and a thriving international life insurance sector means that the Isle of Man can expect to be at the forefront of retirement planning.
Welcoming the announcement, Stuart Clifford, the Chairman of the Association, commented: “With the flexibility of the island’s schemes, together with the long established regulatory system for pensions in the Isle of Man, we are now right at the top of the tree as a QROPS jurisdiction."
Minister for Economic Development, Allan Bell added: “The 50C legislation implemented last year was a great example of government and industry working together, and I am delighted that HMRC have concluded their review. The Isle of Man is already a centre of excellence for international retirement planning, and this gives a further boost to our already world-leading international pensions sector.”
QROPS are one of the financial planning techniques available to UK expats who have already moved or are planning to move overseas to retire. QROPS can provide investment flexibility and currency options for clients who live abroad (or are planning to relocate prior to retirement). They are an effective way to consolidate UK pension assets gathered throughout someone’s working life in the UK and provide flexibility to allow retirement planning to accommodate their new lifestyle overseas.