Gibraltar passed legislation in September which works within the recently updated QROPS framework. The jurisdiction’s QROPS industry had been closed to new business since 2009, when it was decided that it would effectively close to new business rather than risk losing its QROPS status as had recently happened to Singapore.
Since September, a number of new schemes have been launched. Most recently Sovereign Trust launched the Calpe Retirement Benefit Scheme and is understood to be planning to launch a “Lite” version in the New Year.
Guernsey based company Gower Pensions has also recently launched a new scheme having partnered with Gibraltar based Castle Trust, while another new name in the jurisdiction is London & Colonial who confirmed they have received HMRC recognition for a scheme it will be launching in the New Year.
Explaining why it chose Gibraltar, Gower Pensions said, among other things, that it is because the 2.5% tax rate is favourable compared with other jurisdictions.
“[The rate] compares favourably with other jurisdictions such as Malta who levy a withholding tax of 30% plus where individuals are resident in countries that do not have a double taxation agreement with Malta,” said the statement.
“Gibraltar is therefore particularly well placed to serve clients based in Asia, the Middle East and any country that has a restrictive double taxation treaty network.”
Another strength of the jurisdiction cited by Gower is a voluntary Code of Conduct which has been agreed to by all providers which is shortly to be reinforced by a more official Code of Practice currently being drawn up by the Tax Office – non-compliance with which could see a provider have its schemes withdrawn.
“In 2009 when Gibraltar took the decision to self-impose a QROPS ban, it was perhaps not seen by everyone as a good decision,” said Steven Knight chairman of Gibraltar’s Association of Pension Fund Administrators and provider Castle Trust.
“However, pensions are long term and I think people realise it was the best thing to have done and this strategy of taking our time and getting it right is beginning to pay dividends.”
