Guernsey

More Guernsey pension plans may be approved

More QROPS pension schemes based in Guernsey may be approved by HM Revenue and Customs, tax officials say.

The number of island schemes approved by HMRC dropped from 300 to three in April due to tax avoidance measures.

Rob Gray, director of Income Tax, said a number of schemes were disqualified as they were not limited to islanders.

QROPS were introduced to allowed British expats to transfer their pensions abroad but the rules were changed to tackle tax avoidance.

Mr Gray said that some schemes had been disqualified because they allowed expats to join, but there was no formal rule on it.

'Talks ongoing'

De-listing for Guernsey schemes means they may encounter difficulties in receiving pension transfers from the UK, for example when a new employee moves to the island from the UK.

Mr Gray said HMRC was willing to reconsider these schemes following negotiations with the Income Tax Office.

He said: "We have been working hard over the last few weeks to protect the QROPS status of purely domestic Guernsey schemes which have been caught up in the action taken by HMRC.

"I am delighted that HMRC has recognised and accepted the arguments that we have made.

"Talks with HMRC are ongoing regarding Guernsey schemes that have members resident in the other Crown Dependencies (the Isle of Man and Jersey) as well as other aspects of QROPS."

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