The Guernsey QROPS Market

You may well be aware of the tax benefits applicable to Guernsey and how these benefits have attracted expats to the island over the years. Because of its close proximity, economic stability and the fact that it’s an English speaking nation, Guernsey continues to draw British expatriates to its shores – and this sustained interest means that its QROPS market remains highly competitive.

QROPS pension schemes have been offered to British expats from the Channel Island since April 2006; so let’s take a look at the benefits of these offshore pensions and how they can benefit you.

The Benefits of Guernsey QROPS

Guernsey QROPS offer a wide range of incentives for British expats, including the option to live anywhere outside of the UK – and this is not location inclusive; so scheme holders can choose to live wherever they wish, with the choice to locate between several homes in a number of different countries. Pension benefits and the 25% tax free lump sums are taxable at the point of residence – this means that QROPS don’t carry the same restrictions that usually see only the very financially wealthy being able to benefit from the low tax rates on offer.

If expats qualify by meeting certain criteria, Guernsey QROPS may also provide the opportunity for scheme holders to take a further 25% loan of the pension amount. While this is specific to Guernsey based QROPS, be sure to check with your IFA, as this isn’t a blanket option available through all providers.

QROPS Advantages – Getting the Right Advice

In the past, HMRC (Revenues and Customs) tackled Guernsey over some manipulation of QROPS regulations, namely about the administration of trusts – this was immediately tackled by their financial regulation authority, demonstrating efficiency of response by those responsible for this jurisdiction.

With the above being an isolated experience, Guernsey QROPS are now seen to be an attractive investment proposition; with added advantages such as self-managed schemes and a wide range of flexible investment opportunities. Additionally, because of the competitive nature of the QROPS market on this Channel Island, the costs involved in setting up your offshore investments here are also very competitive.

As with any investments, it is vital that you get the right advice from a professional financial advisor to ensure that you are making the most from your money. If you would like to talk to one of our consultants regarding QROPS in Guernsey, please get in touch and we will do whatever we can to help you.

Read our QROPS FAQs