Pressure on Isle of Man to abolish tax on pensions
Isle of Man fiscal authorities are being urged to abolish tax on pension income for non-residents in the wake of the UK seemingly rubberstamping the same approach in Guernsey.
Firms offering Qualifying Recognised Overseas Pension Schemes (Q
Isle of Man fiscal authorities are being urged to abolish tax on pension income for non-residents in the wake of the UK seemingly rubberstamping the same approach in Guernsey.
Firms offering Qualifying Recognised Overseas Pension Schemes (QROPS) based in the island have lobbied for the current 18% rate at which distributions are taxed to be cut to nothing in order to compete on a level playing field
with Guernsey.
Their calls follow HMRC investigating Guernsey’s QROPS framework. HMRC made a number of
recommendations – now adopted – for revision of Guernsey’s regulations.
It had been thought that a provision allowing non-residents to receive untaxed income would be axed because some believed it fell outside QROPS regulations. But it was not, meaning when a scheme is chosen, all else being equal, one domiciled in Guernsey would be likely to be favoured ahead of the Isle of Man.
Gary Boal, managing director of Isle of Man-based Boal & Co, said: “Anything that can be done to strengthen the island’s competitive position is something we would welcome. We have made our views in this respect known to the relevant authorities.”