Jersey Cancels Plans to Attract Non-Residents to its QROPS
Jersey pulls out of the QROPS market for non-residents. As Malta firms its stance in the QROPS market after new QROPS rules changes, Jersey decides to scrap theirs. The Jersey QROPS plan which was attempting to compete with Guernsey and attract a higher percentage of the market had to be binned when they realized they would have to comply to HMRC rules to tax non-residents and residents equally. This has led to the demise of the newer Isle of Man 50c and Guernsey 157e schemes.
The Jersey scheme was to follow down the path of the 157e Guernsey Scheme and Isle of Man 50c scheme which was to provide enhanced lump sum withdrawals and enhanced tax benefits for its members. The Guernsey and Isle of Man QROPS industry was decimated and hundreds of schemes in Guernsey, IOM and NZ were forced to close in light of the new rules.
Jersey has long provided QROPS for residents living in Jersey, but they wanted to take advantage of a wider QROPS market by offering offshore pensions transfers to non-residents. They have now decided against this idea, perhaps in light of the closure of the Guernsey, IOM and NZ schemes as well as the the Qatar Financial Centre Regulatory Authority also decided against allowing QROPS. It may come as surprise to some as the Jersey government had been working on the plan for some time.
Those thinking of moving to a Jersey QROPS should think about a Malta QROPS or NZ QROPS instead
The tax issue stems from HMRC’s insistence that jurisdictions offering QROPS must offer resident and non-resident retirement savers similar benefits and tax treatment. Malta has now become the de facto QROPS for UK pension transfers. Malta has over 60 Double Taxation Agreements (DTA’s) with other countries and Malta have strengthened their position since the new QROPS rules came in force.
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