CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Guernsey Cracks Down On Pension Schemes Misuse

Guernsey Cracks Down On Pension Schemes Misuse

by Phillip Morton, Investors

18 November 2008

The Guernsey Income Tax Authority has introduced further legislation following bad publicity in the local and national media over the last few months regarding perceived misuse of overseas pension schemes.

The schemes in question are those with Qualifying Recognised Overseas Pension Scheme Status (commonly known as QROPS), used for receiving transfers from UK pension schemes.

There have been indications that the UK authorities have concerns regarding Guernsey based schemes. The States of Guernsey Treasury and Resources Department therefore instructed the Administrator of Income Tax to contact HM Revenue & Customs in order to identify their concerns and establish how they could be allayed.

Guernsey has said talks between the two departments have been "most constructive" and that they are "now acting to maintain Guernsey’s good international reputation in the area".

Additional conditions are now being imposed on the approval of any scheme which can admit members who are not resident in Guernsey. It is hoped that these new conditions will prevent non-residents transferring money from the UK and then collapsing the fund, avoiding tax on the proceeds.

Conditions are also being imposed on transfers from Guernsey approved pension schemes with QROPS status.

“There should be no ability to take 100% of the fund as a lump sum,” said Administrator Rob Gray.

“These conditions do impose further restrictions on the use of Guernsey schemes for non-residents, but they continue to demonstrate that Guernsey is committed to ensuring that pension schemes are used for the purpose for which they are established – to provide a pension for individuals in retirement".

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »