QROPS Jersey Pension Transfer for British Expats to Avoid Paying Taxes

QROPS Jersey. Pension Tax Relief

If you are considering retiring in Jersey or abroad you can transfer your pension into a QROPS Jersey, thereby maximizing the tax relief of your pension. As a British Expat who lives or works in Jersey, you are able to leverage your offshore status and transfer your UK pension to a secure location such as Malta, meaning you will not have to pay UK taxes on your pension for as long as your remain outside the UK.

Jersey finally decided not to go down the QROPS route in 2012 after two years of checking out the lay of the land. They decided to table the launch of a QROPS as it would not fit HMRC’s new rules. So, now Malta is taking up the slack and even if you live in Jersey, you can transfer to a QROPS in Malta, who have a Double Taxation Agreement with Jersey, as well as 65 other countries, so that your pension avoids UK taxation.

qrops jersey
QROPS Jersey Pension Transfer for British Expats

What are the benefits of retiring abroad or in Jersey?

The Bailiwick of Jersey is a British Crown Dependency off the coast of Normandy, France. As well as the island of Jersey itself, the bailiwick includes two groups of small islands that are no longer permanently inhabited, the Minquiers and Écréhous, and the Pierres de Lecq and other rocks and reefs. Together with the Bailiwick of Guernsey, it forms the grouping known as the Channel Islands. Similar to the Isle of Man, Jersey is a separate possession of the Crown and is not part of the UK.
Jersey has an international identity different from that of the UK, although it belongs to the Common Travel Area and the definition of “United Kingdom” in the British Nationality Act 1981 is interpreted as including the UK and the Islands together. The United Kingdom is constitutionally responsible for the defence of Jersey. However, they have their own taxation and pension regulations.

Similarly, QROPS pension transfers to Guernsey and Isle of Man, which have traditionally been more popular, provide differing tax advantages. The new Isle of Man 50c is specially placed in the market for higher rate tax payers, especially for those with large pensions. Click here for more information on Isle of Man 50c QROPS. If you are living or working in Jersey, you have the chance of using your offshore address to move your pension to a QROPS.

If you are a Brit abroad, the most popular QROPS destinations are now Malta, Gibraltar and New Zealand. The Isle of Man is still hanging in there, but now attracts a 20% income tax, whilst more than 300 Guernsey schemes were delisted.

Benefits of a QROPS Transfer for Jersey Residents and British Expats

the benefits of a jersey QROPS


What tax would I Pay on My QROPS in Jersey?

The Island’s low rate of income tax (20%) has attracted high net-worth individuals for centuries. However, the finance industry has only properly existed in Jersey since 1962, when a law that had capped interest rates at 5% was abolished.

In the years that followed, financial institutions were drawn to the Island by its stable government, proximity to both the UK and continental Europe and low taxes. Jersey is now an international financial centre, with 45 banks and over 33,000 registered companies. More than £187 billion deposited in the Island at any one time – 68% in foreign currency.

The tax on your QROPS would depend on where it was parked. A QROPS in NZ and Malta would attract no taxation at source. A Gibraltar QROPS attracts a 2.5% income tax at source. All QROPS avoid UK taxation; including income taxes of up to 50% and 55% tax upon death.

If the money was remitted to Jersey, there would be a 20% income tax.

Jersey QROPS Benefits Defined

When you elect to transfer your pension offshore using a Qualifying Recognized Overseas Pension Scheme, you are exempt from paying UK taxes on your pension for the entire time you remain outside of the UK. If you are gone for over 10 years, reporting to the HRMC is no longer a requirement.

Those of you currently living in Jersey can use your offshore address to move your UK pension to a UK tax free Jersey QROPS. If retiring or living abroad is part of your plan, a QROPS should be as well.

QROPS Trustees in Jersy

Is Moving My Pension to Jersey a Necessity?

No. There are plenty of QROPS trustees in Jersey except most of them are company schemes and are for people who are living in Jersey. You can see the full QROPS list here. Your pension can be transferred to a secure jurisdiction such as Malta, an EU sovereign state where it will be out of the UK tax system and your pension will be paid gross and grow tax free.

What happens to my QROPS if I leave Jersey?
If you are outside the UK, you will still avoid all UK taxation on your pension. If you move back to the UK, your pension would attract the same tax as UK SIPP rules, but you can take a 30% lump sum whilst you are overseas to reduce your tax burden.

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

QROPS Jersey article written by QROPS Specialists.

QROPS Jersey Pension Transfer for British Expats to Avoid Paying Taxes by

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