QROPS Guernsey Pension Transfers for UK Expats to Avoid Taxes

QROPS Guernsey Closed

STOP PRESS: QROPS Guernsey have had over 300 schemes closed down. For the moment Guernsey is in effect closed. Those under the old rules who transferred before April 2012 are protected under the old rules. UK expats who haven’t transferred yet, need to look to a Gibraltar, Isle of Man, Malta or NZ QROPS.

The article below will be left for historical purposes.

British expats living in Guernsey or wishing to retire in Guernsey or abroad can now transfer their UK pension into a QROPS Guernsey to maximize pension tax relief. UK expats living or working in Guernsey or outside the UK can take advantage of their offshore status and transfer their UK pension offshore to somewhere secure like the Isle of Man or Guernsey and will no longer have to pay UK taxes on their pension if they stay offshore. A QROPS Guernsey is one of the first and most secure QROPS jurisdictions and is still one of the most popular jurisdictions today.

qrops guernsey
QROPS Guernsey Pension Transfer for UK Expats

Why Live or Retire in Guernsey as a UK Expat?

The Bailiwick of Guernsey is a British Crown Dependency in the English Channel off the coast of Normandy.

The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet possessions. The Bailiwick of Guernsey also administers some aspects of two nearby crown dependencies (Alderney and Sark), and the island of Brecqhou.

Although its defence is the responsibility of the United Kingdom, the Bailiwick of Guernsey is not part of the UK; and while it participates in the Common Travel Area, it is not part of the European Union. It’s tax and pension regulations are separate from the UK and is a great place to transfer your pension to avoid tax even if you do not live there. Both Guernsey and the Isle of Man are good jurisdictions to transfer your pension to even if you live in Europe, Asia or the rest of the world. Which jurisdiction and QROPS you transfer to would depend on the individual fees and administrational procedures of each individual QROPS company as well as the size of your pension. Contact QROPS Specialists to find out more information.


Benefits of a QROPS in Guernsey

What are the benefits of a QROPS Guernsey Pension Transfer for UK expats?

• Avoid UK income tax
• Avoid UK dividends tax
• Avoid UK capital gains tax (CGT)
• Avoid UK inheritance tax (IHT)

• Currency choice. You can choose to have your pension transferred to a QROPS denominated in USD, EUR or keep it in GBP

• Have the ability to make higher returns with freedom of investment

Family Protection: Upon death, the entire pension pot gets passed on to your nearest and dearest

Security: Your UK pension is transferred to Guernsey which is under the protection of the British Crown, but has its own strong financial regulations which are tax efficient

What is the economy of Guernsey like?

Financial services, such as banking, fund management, and insurance, account for about 32% of total income. Tourism, manufacturing, and horticulture, mainly tomatoes and cut flowers, especially freesias, have been declining. Light tax and death duties make Guernsey a popular offshore finance centre for private equity funds. Guernsey issues its own sterling coinage and banknotes. UK coinage and (English, Scottish and Northern Irish faced) banknotes also circulate freely and interchangeably.

What is a QROPS Guernsey?

A Qualifying Recognized Overseas Pension Scheme (QROPS Guernsey) allows your UK pension to be transferred offshore to reduce your tax burden. Effectively, you will no longer pay UK tax on your pension whilst you are offshore and after 5 years of living offshore, the reporting requirements to HMRC cease.

A QROPS Guernsey now allows a 30% lump sum when you retire, which is an increase from the original 25% when QROP Guernsey first launched in 2006.

As far as income drawdown, during the first years of non-UK residency income is subject to UK GAD rates, both USP and ASP. After 5 full years of non-UK residency benefits may be paid under more flexible Guernsey rules. Income is paid gross. No annuity is needed and there are no taxes upon death or on income.

Pension Tax Relief for British Expats Moving to a QROPS Guernsey

Do I need to move my pension to Guernsey?
No. Your pension can be transferred to a secure jurisdiction such as the Isle of Man or Guernsey where it will be out of the UK tax system and your pension will be paid gross and grow tax free.

Do I need to live and retire in Guernsey?
No, you can live anywhere offshore. As long as you are outside the UK, your QROPS will grow tax free. If you ever return to live permanently in the UK, your pension will simply return to UK Self Invested Pension Plan (SIPP) rules.

For enquiries, please send email to info@qropsspecialists.com

Pension tax relief for UK expats, QROPS Guernsey article written by QROPS Specialists.

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