After a three year absence, the QROPS market returns to Gibraltar.
Despite a lack of comment from HMRC, it is understood that after extensive negotiations between the UK tax authorities and the pension industry in Gibraltar agreement has now been reached.
Steven Knight, Gibraltar Association of Pension Fund Administrators Chairman was involved in the discussions between the government of Gibraltar, GAPFA and HMRC said “We have been confident that Gibraltar’s schemes for imported pension schemes are fully compliant with the UK’s intention to ensure that the majority of any fund is used solely for providing an income for life in retirement, and this official HMRC endorsement has made worthwhile our past voluntary suspension of activity in this area”.
The changes have taken place following a law passed by the Gibraltar authorities in June of this year.
Gibraltar Association of Pension Fund Administrators have promised to work closely with the Gibraltar Tax Office and the Pension Regulator to ensure that future QROPS meet HMRC requirements.
Steven Knight, Gibraltar Association of Pension Fund Administrators Chairman commented “The Association is close to finalising an approved Code of Practice that will be compulsory for all members and this will help ensure that there are no grey areas.
“Further changes may become necessary - and the Code will be updated regularly - to ensure that members of the public and pensioners can have confidence in Gibraltar-based QROPS being managed to the highest standard possible
“Non-compliant rogue operators will not be able to use Gibraltar in any way,”
It is important when considering transferring your UK pension offshore to consult a qualified IFA.