The Guernsey Association of Pension Providers (GAPP) is holding a QROPS (Qualified Recognised Offshore Pension Scheme) seminar in London later on this year. There continues to be significant confusion around the future amendments that could be made by Her Majesty’s Revenue and Customs (HRMC) to current QROPS regulations. GAPP intends to provide clarity on the amendments that are expected to be in place from 6 April 2012.
Guernsey is one of the principle jurisdictions which holds QROPS and GAPP, which represents Guernsey service providers, agreed that, in principle, the proposed changes were suitable. However what GAPP weren’t comfortable with was the proposed amended Condition 4. This intends to treat both non-residents and residents the same in terms of tax on benefits paid within any QROPS scheme.
To maintain Guernsey’s QROPS competitiveness the Guernsey Government and Parliament have pushed through legislation which is designed to fit in with HMRC’s expected revised requirements. Whereby they plan to create a new category of pension scheme which will extend the tax exemption on pension benefits to Guernsey residents.
Until the UK 2012 Finance Bill is published after the yesterday’s budget it will still not be 100% clear what exactly the impact of amendments to the QROPS in Guernsey but the Guernsey Parliament have promised to adapt quickly to benefit non-residents and residents alike. GAPP feels it is vital that they continue to play a part in the consultation process with the HMRC. Even if HMRC do not take heed of GAPPs concerns they will be well placed to adapt swiftly. QROPS provide a significant income stream for Guernsey hence the importance the Guernsey Parliament is placing on acting quickly.
The seminar is being held in London at 1600 on 23 May. For more information on this event, please contact Jennifer via email: firstname.lastname@example.org or ring: +44 (0)1481720071.
For more up to date information on Guernsey QROPS please contact us here.