Gibraltar To Offer New Pension Schemes To UK Expats
Gibraltar is to introduce Qualified Non-UK Pension Schemes (QNUPS), which will enable British expats to make additional contributions to pension schemes that will be administered by Gibraltar-regulated trustees.
A QNUPS allows an individual to transfer UK-based pension assets to overseas-based schemes. These contributions may exceed the usual UK limit of GBP50,000 per year. This scheme is being offered in addition to Gibraltar’s traditional Qualifying Recognised Overseas Pension Schemes (QROPS), which are often used by UK expats to transfer their pension from the UK without incurring substantial tax.
Steven Knight, Chairman of Gibraltar Association of Pension Fund Administrators (GAPFA), said: “The introduction of specific QNUPS legislation is a very welcome addition to the Gibraltar pension sector and, based on current UK legislation, provides absolute clarity over the use and taxation exposure of assets held by a Gibraltar QNUPS.”
It is anticipated that legislation will be passed very shortly to ensure that the Gibraltar legislation is complete regarding QNUPS. Gibraltar itself levies no inheritance tax, wealth tax or Capital Gains Tax on pensions held. Apart from the proposed 2.5 percent due on distribution, the only taxes that may be due are those that would apply to residents of other countries. For payments that have arisen from former UK residents, a QNUPS is expressly exempted from UK inheritance tax under Statutory Instrument No. 51 (2010).
Credit: Tax News
