In particular, the Gibraltar Association of Pension Fund Administrators (GAPFA) noted, the new law’s insistence on pension transfers out of Gibraltar “only being possible to territories having rules as compliant as its own” would provide a “powerful reassurance on safety and security that investors seek”.
As reported, Gibraltar’s government next month is expected to approve a new tax regime that imposes a 2.5% tax on annual distributions from imported pensions, and permits the plan member to take up to 30% of his or her pension in a tax-free lump sum.
The new regime is being introduced to make it possible to resume transfers of UK pensions to Gibraltar, which were voluntarily suspended by pension fund administrators in 2009 after HMRC expressed concerns over Gibraltar’s then-existing QROPS regime.
That situation has mostly remained unchanged, although last year STM Fidecs launched a scheme that it said met HMRC’s requirements, and which is on HMRC’s list.
By introducing the new tax law, Gibraltar is “not only filling the void left by HMRC’s delisting of international pension schemes in some other jurisdictions, [but it is also] helping to ensure worldwide adherence to the high standards for retirement provision that the UK requires,” GAPFA said, in a statement that it said was issued in support of its members’ “new push” to attract qualifying recognised overseas pension schemes to the jurisdiction.
The organisation is to hold a seminar next month in Gibraltar aimed at helping those interested in learning more about the Gibraltar QROPS regime to learn more about it. Gibraltar’s Finance Services Commission chief executive Marcus Killick is due to speak at the event, GAPFA said.
Steven Knight, who is chairman of GAPFA noted that Gibraltar’s effort to promote itself as a QROPS jurisdiction comes in the wake of the delisting, by HM Revenue & Customs, of more than 400 QROPS in Guernsey, and the Isle of Man last month.
“The new law in Gibraltar has been introduced specifically to enable overseas pensions to be domiciled here, having regard to the new rules introduced by HMRC for QROPS, which first and foremost are intended to provide a pension income into the future”, explained Knight, who is also chairman of the Gibraltar pensions management specialist Castle Trust Group.
Next month’s seminar would also provide GAPFA with an opportunity to establish a “best practice code” for GAPFA members’ handling of all imported pension schemes, he added.
Last week, London & Colonial, the London-based investment products distributor and administrator, said it planned to revive a long-harboured plan to establish a QROPS in Gibraltar, in the wake of the news of Gibraltar’s proposed new pensions legislation.
