The Horizon International Pension Plan Lite is a sub scheme of the Equus QROPS – a Gibraltar-based product adminstered by Castle Trust Management Services. It offers clients a set up and annual fee of £400, this compares with the usual £995 set up fee and £995 annual fee for schemes above £75,000.
Gower’s “lite” product follows launches from both Momentum and Sovereign Group in recent months, although, Concept and Skandia were in fact the first to launch a low cost QROPS product in October 2011.
The new scheme is targeted at those looking to transfer between £25,000 and £75,000 and offers a range of investment options including links with all the usual life company platforms, as well as access to the Nedbank trading platform and Gower’s active discretionary investment management service.
It should be noted that schemes at the higher rate have a wider investment choice.
As a Gibraltar based QROPS, the scheme benefits from a withholding tax rate of 2.5%, deducted at source – one of the lowest available in the QROPS market.
To see a “cut out and keep” comparison of all the main QROPS jurisdictions compiled by Rex Cowley of Jersey-based Newdawn Consultancy click here.
Paul Wyatt, regional manager, Asia at Gower said it is something the company has wanted to do for a long time.
“There has been a gap in the market where smaller sums have wanted to be transferred out of the UK for other reasons than income tax such as zero tax on payment of death benefits or no need to purchase an annuity," said Wyatt.
“There has been no trust product with a mixture of 1) low enough fees to make it economical and 2) reasonable investment choices so that the adviser has the opportunity to maximise performance.
“We’ve seen low cost QROPS in the past where the very limited investment options meant they weren’t really viable."
