New QROPS Developments
By setting up a QROPS (Qualifying Recognised Overseas Pension Scheme), it is now possible to have access to your UK pension, whereas previously, prior to 2006, it has not possible to access the benefits - ie it was 'frozen'. The benefits are sometimes immediate - depending on the jurisdiction, you can get instant access to the funds, as well as numerous other potential benefits.
The preceding couple of months has seen various developments in the QROPS landscape, with many QROPS schemes having been removed out from the HMRC List, and with other jurisdictions looking to take their place. One example of the drastic changes made in the recent rule changes was the effective removal of all Guernsey QROPS from the approved HMRC list.
Perhaps one surprise reesult from all the changes, is that Malta has emerged as a leading QROPS jurisdiction.
The Emergence of Malta QROPS
Malta has a full EU membership, and this strengthens it's positions as a valid and robust QROPS jurisdiction.
With legislation based on the UK model, companies who wish to administer retirement schemes have to be registered in terms of the Special Funds (Regulation) Act, making Malta’s QROPS provision amongst the best-regulated in the world.
While other QROPS jurisdictions schemes then had to answer questions from HMRC, Malta negotiated and talked to HMRC throughout the process. This gives us the belief in recommending a Malta QROPS as a leading jurisdiction.
Although there are fully regulated pension industries in a number of countries outside of the EU, as well as mature international pensions industries in the British Protectorates, we suspect these jurisdictions from a QROPS perspective to present potentially a higher level of risk for advisers, service providers and customers when compared to a QROPS established in the EU - particularly QROPS in Malta.
You need to factor in a variety of issues and factors when deciding the best places to locate your QROPS.
These criteria include:
Following a detailed analysis of the available options, Malta satisfied all of the above QROPS conditions and had the overall protection . of being based in an EU Member State. Accordingly Malta is becoming the recommended jurisdiction for the QROPS.
Extensive Tax Treaty Network
One of the most significant attributes that Malta carries is that it has an substantial tax treaty network. Malta currently has 57 tax treaties including India QROPS, that are able to, in many instances, confer particular benefits to plan members when compared to the UK tax treaty network that applies to UK registered pension schemes.
The tax treaty with the US is a prime example where the existence of a treaty has enabled pension holders in the US to be able to set up a QROPS and benefit from tax relief on their pension within the US.
Gibraltar is also looking to benefit from the demise of Guernsey as a QROPS jurisdiction. Thus the emergence of Gibraltar QROPS will put further pressure on the other QROPS jurisdictions.
Thus, to conclude, it can be noted that the QROPS landscape is rapidly changing, with the HMRC rigorously clamping down on what it perceives are abuses of the system. If you require further information about QROPS, or are thinking about a QROPS transfer, then please go to http://nri-invest.in, who are the leaders in independent QROPS advice.
By setting up a QROPS (Qualifying Recognised Overseas Pension Scheme), it is now possible to have access to your UK pension, whereas previously, prior to 2006, it has not possible to access the benefits - ie it was 'frozen'. The benefits are sometimes immediate - depending on the jurisdiction, you can get instant access to the funds, as well as numerous other potential benefits.
The preceding couple of months has seen various developments in the QROPS landscape, with many QROPS schemes having been removed out from the HMRC List, and with other jurisdictions looking to take their place. One example of the drastic changes made in the recent rule changes was the effective removal of all Guernsey QROPS from the approved HMRC list.
Perhaps one surprise reesult from all the changes, is that Malta has emerged as a leading QROPS jurisdiction.
The Emergence of Malta QROPS
Malta has a full EU membership, and this strengthens it's positions as a valid and robust QROPS jurisdiction.
With legislation based on the UK model, companies who wish to administer retirement schemes have to be registered in terms of the Special Funds (Regulation) Act, making Malta’s QROPS provision amongst the best-regulated in the world.
While other QROPS jurisdictions schemes then had to answer questions from HMRC, Malta negotiated and talked to HMRC throughout the process. This gives us the belief in recommending a Malta QROPS as a leading jurisdiction.
Although there are fully regulated pension industries in a number of countries outside of the EU, as well as mature international pensions industries in the British Protectorates, we suspect these jurisdictions from a QROPS perspective to present potentially a higher level of risk for advisers, service providers and customers when compared to a QROPS established in the EU - particularly QROPS in Malta.
You need to factor in a variety of issues and factors when deciding the best places to locate your QROPS.
These criteria include:
- A well developed international tax treaty network.
- Secure legislative platform.
- Licensed domestic pension environment including the requirement for all QROPS in the jurisdiction to be audited.
- Low tax environment to ensure a favourable QROPS structure and benefits for drawing down a pension
Following a detailed analysis of the available options, Malta satisfied all of the above QROPS conditions and had the overall protection . of being based in an EU Member State. Accordingly Malta is becoming the recommended jurisdiction for the QROPS.
Extensive Tax Treaty Network
One of the most significant attributes that Malta carries is that it has an substantial tax treaty network. Malta currently has 57 tax treaties including India QROPS, that are able to, in many instances, confer particular benefits to plan members when compared to the UK tax treaty network that applies to UK registered pension schemes.
The tax treaty with the US is a prime example where the existence of a treaty has enabled pension holders in the US to be able to set up a QROPS and benefit from tax relief on their pension within the US.
Gibraltar is also looking to benefit from the demise of Guernsey as a QROPS jurisdiction. Thus the emergence of Gibraltar QROPS will put further pressure on the other QROPS jurisdictions.
Thus, to conclude, it can be noted that the QROPS landscape is rapidly changing, with the HMRC rigorously clamping down on what it perceives are abuses of the system. If you require further information about QROPS, or are thinking about a QROPS transfer, then please go to http://nri-invest.in, who are the leaders in independent QROPS advice.
