Isle of Man-based fiduciary services provider announces the launch of its new bespoke Qrops.
The qualifying recognised overseas pension scheme (Qrops) is available to individuals who are leaving the UK or are already living outside the UK and enables the transfer of their personal and company pension funds to an overseas pension fund.
The Isle of Man Qrops is derived from the Isle of Man government’s creation of the Section 50C legislation.
The scheme offers significant advantages for approved pensions, namely no tax charges on any income and gains generated within the pension fund or on pension benefits paid to non-residents of the island.
The scheme also offers investors the ability to take a 30 per cent lump sum withdrawal on retirement, and potentially more, including the growth on funds transferred into the Qrops.
Flexibility in the withdrawal of benefits – the pensioner can choose income drawdown, (avoiding the need to purchase an annuity) or alternatively can leave the funds intact if there is no income requirement is also an option.
No tax charges are made on the death of the pensioner.
Andrew Cardwell, tax director of Abacus Trust Company Limited, said: “There are many providers currently offering master trust type arrangements in the Isle of Man, however our Qrops is an individual pension arrangement, which retains the freedom of investment and control currently enjoyed by investors in their existing Sipps and Ssas.
“Our fee structure, while competitive, reflects the bespoke nature of our Qrops solution and unlike the majority of Qrops providers, as an independent company with no financial ties to any financial institution, we accept no commissions or other financial incentives from organisations wishing to do business with us.”
Abacus Trust Company Limited will act as both trustees and administrators of the Qrops arrangements.
Alistair Stewart, director of Abacus Fiduciary Services Limited, UK, said: “Choosing the right location for a Qrops is essential.
“The Isle of Man is an offshore financial centre, internationally recognised and respected as a jurisdiction of excellence.
“Having reformed the Qrops landscape with its new pension legislation, the Isle of Man is fast becoming one of the leading jurisdictions in this arena with the island’s Qrops considered an innovative scheme, offering significant advantages for approved pensions.”
Emma Ann HughesMagazine: FTAdviser Published Thursday , September 08, 2011
