Following all of the much publicised furore surrounding the recent changes by HMRC to the QROPS legislation (Qualifying Recognised Overseas Pension Scheme) and the subsequent stripping of all but three Guernsey schemes from the approved list, one could be forgiven for feeling a little lost as to what the position is now and where to go from here.
The schemes that were removed from the approved list were done so as a precautionary measure, subject to review by HMRC. I am pleased to report that we have had a productive exchange with HMRC to ensure that we can:
a) Regain the QROPS status for any scheme previously approved under the old legislation where applicable;
b) Comply with the amended legislation for any new scheme where Members wish to transfer their pension arrangements from the UK.
One of main areas of concern for HMRC within the Guernsey Income Tax legislation is that a Guernsey RATS is potentially available to non-Guernsey residents. Our policy is, and always has been to offer our RATS for the local resident market only and as such we have amended our scheme rules to a standard that HMRC is happy to accept, and approve them as being QROPS compliant.
Anyone wishing to find out further information regarding any of the above, or indeed with the setting up or transfer of a Guernsey Retirement Annuity Trust should get in touch with me or any of the directors.
Paulina Batiste T.E.P C.A.T.
This article has been prepared as a general guide. It is not a substitute for professional advice. Neither Collenette Jones Limited, Crossways Trustees Limited nor its directors or employees accept any responsibility for loss or damage incurred as a result of acting or refraining to act upon anything contained in or omitted from this document.