Accessible Gibraltar QROPS Launched For Smaller Portfolios

By Editorial 13 March, 2013

In response to strong market demand from individuals with pension assets of less than GBP75,000 (USD111,500), Castle Trust Group has introduced a second Qualifying Recognized Overseas Pension Scheme (QROPS) - the Equus Silver Retirement Annuity Trust Scheme - registered in and managed from Gibraltar.

UK tax law provides tax-free treatment of the transfer of pension schemes to qualifying schemes overseas, to simplify the tax affairs of UK residents wishing to reside elsewhere. Equus Silver has been added by the UK tax authority HM Revenue and Customs to its official list of recognized QROPS, and offers a market low set-up cost of GBP299 and an equal annual management fee to appeal to those with smaller pension pots.

Steven Knight, Castle Trust Group Chairman, explains: “This new QROPS aims to make the management of pensions as simple and inexpensive as possible without compromising on investment choice,” offering over 1,000 funds in seven currencies.

“It will particularly benefit people who have lower value portfolios that otherwise would adversely suffer from high minimum professional charges on the management of their pension. At this level, Equus Silver is directly comparable with the cost of providing a UK Self-Invested Personal Pension (SIPP),” he said.

Knight, who is also chairman of the Gibraltar Association of Pension Fund Administrators (GAPFA), continued: “Our members have seen strong demand across the board for QROPS managed from Gibraltar, which gives the certainty of a low 2.5% tax rate and a pragmatic approach to determining fair distribution levels using bespoke actuarial input. The whole of the Gibraltar pensions sector aims to ensure its reputation is retained at the highest level internationally."

In response to a change in policy by HMRC, in Gibraltar, lump-sum cash distributions to persons over 55 years old have been limited to 30%, a 2.5% tax is levied on distributions, and new restrictions to prevent transfers to jurisdictions that do not enforce sufficient anti-avoidance safeguards required by HMRC have been introduced.

Tags: Individuals | Expatriates | Tax | Investment | Pensions | Gibraltar | Mining | International Financial Centres (IFC) | Tax Authority |


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