Guernsey is making sure it passes it QROPS legislation to meet with HMRC requirements

The UK HMRC proposed new QROPS regulations are due to take effect in the new tax year, starting 6 April, 2012. Inline with this Guernsey is looking to push through the House of Deliberation a series of amendments to its own QROPS regulations to fit in with the HMRC changes. There are few concerns within Guernsey that the proposed changes will not pass swiftly through their legislative council.

There is some debate as to whether or not HMRC have left enough time to get their proposed revised QROPS regulations into the Budget on 21 March 2012 and to take effect by 6 April 2012, however Guernsey have continued to demonstrate their flexibility in the ever changing world of QROPS regulations

The proposed new scheme provides for a “one-size-fits-all” pension that is available to islanders and non-residents. No tax is incurred on the benefits which are paid, thus meeting one of the principle concerns of the HMRC. The UK Government has stated that the tax payments on a QROPS should be at the same rate at which residents of that country in which the QROPS is held are also taxed. To date Guernsey has not taxed non-resident benefits but has taxed resident pensions.

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