Gibraltar QROPS beginning to blossom
Gibraltar QROPS are beginning to blossom following HMRC’s decision to allow QROP providers to do business again.
Initially HMRC claimed that the Gibraltar 0% income tax rate on pension payments was nothing more than a concession to appease and meet compliance regulations.
After numerous attempts by the industry the government finally agreed to amend the state’s tax legislation to meet QROPS rules. This has allowed QROPS providers to lift their ban in this jurisdiction and as we are seeing since this announcement the take-up is beginning to floorish !
Gibraltar is an attractive offshore financial center and is popular with Expats because of its ties back to the UK, low tax regime, common language and stable government.
QROPS pension schemes can be established in Gibraltar to take advantage of its low tax environment, but like any other QROPS the rules allow its policy holders to live in different parts of the world but to take advantage of them being based out of this region.
Here are just some of the benefits to consider in regard to a Gibraltar QROP:-
- Flexible investment opportunities
- 30% tax free cash lump sum
- No need to purchase an annuity or alternative second pension (ASP)
- Income tax on Gibraltar QROPS depends on where the person lives and their nationality
As we are seeing in the industry today the rules regarding QROPS can and due change which is why we recommend that you engage with a regulated and independent financial advisor who is fully averse as regards these latest changes and advantages available to you.