QROPS Jersey Launches in 2015
After around a two year wait, QROPS Jersey can finally be offered for expats and non-resident foreigners who have worked in the UK and built up a substantial pension.
QROPS in Jersey used to be only offered to Jersey residents only.
But, starting January 1st, the Jersey QROPS is open to parties who live in a third jurisdiction.
So, someone living in France, but who has worked all his life in the UK can move their pension to Jersey for example.
Why Transfer Your Pension to Jersey?
Jersey was ranked as the top offshore financial centre last year in 2014. It also won in the previous year.
The Jersey Financial Services Commission is responsible for the regulation, supervision and development of the financial services industry in the Island of Jersey.
As far as regulation, Jersey is fully aligned with the highest standards of the third anti-money laundering EU Directive and was the first offshore finance centres to become a full signatory to the IOSCO Multilateral Treaty, an international benchmark for cross border co-operation between regulators.
The Jersey authorities has signed 42 international tax agreement with countries from around the world.
Jersey also has a strong strong deposit protection scheme with protection for up to £50,000 in the event that a Jersey bank should fail.
Jersey has a unique constitutional position. Although its allegiance is to the British Crown, it is not a part of the UK and is not represented in the British Houses of Parliament. The island’s domestic autonomy has been preserved via charter and convention through 800 years of English history.
As well as being politically stable, Jersey offers tax neutrality. There is no Capital Transfer Tax, Capital Gains Tax, Value Added Tax, Withholding Taxes or Wealth Taxes in Jersey. This provides tax certainty and allows for fiscally efficient cross-border investment.
Transferring pension funds to a Vantage Jersey QROPS provides peace of mind knowing that the fund is looked after in a secure, well regulated environment.
The QROPS trustees we use is written under a deed of trust subject to Jersey law and is available to both Jersey resident and non-resident members. It has tax approval from the Jersey Comptroller of Income Tax and is recognised by HMRC as a QROPS.
Advantages of a QROPS in Jersey
- A highly regulated, secure environment to protect client’s pension monies and assets
- Ability to take a higher cash lump sum at retirement tax-free, You can access 30% of your pension pot rather than 25% on the UK
- They can also take an additional 30% tax-free lump sum of any additional contributions made. A Jersey QROPS is unique in this aspect.
- You can choose the currency of your pension plan. Keep it in GBP in Jersey or if you live in Europe, the EUR may be more suitable or the US Dollar if you are based elsewhere in the world.
- Pension freedom. A wide range of investment choices including ETFs and offshore mutual funds to allow more options for future growth of your pension
- The ability to consolidate all your pension funds into a QROPS plan in one easy to manage place
- No maximum lifetime limit on the amount that can be held in the pension fund
- No restriction imposed on the level or frequency of contributions – a single lump sum contribution / transfer can be made at commencement of the QROPS plan, or continued contributions can be made thereafter from wherever the member may be living in the world.
- Ability to pass on pension funds to whomever you like upon death
- There is no tax on death before retirement
After retirement, there is a 10% tax imposed by Jersey when the fund is paid over to the deceased’s estate
- Jersey retirement drawdown options: there is a choice of purchasing a traditional annuity or opt for income drawdown (up to maximum of 150% of UK GAD rates). You can also opt for a mix of an annuity and income drawdown for protection.
- If you ever want to exit the pension plan, you are able to transfer out of the plan to another recognised pension scheme (outside of Jersey) at any time.
What is the tax on a Jersey QROPS
Under Jersey tax laws pension income payments at drawdown are subject to 20% taxation (unless made to a member who is tax resident in a country with a Double Taxation Agreement (DTA) with Jersey).
Other income taxes would depend on where you reside and the nature of the DTA relationship with Jersey.
There is no tax on growth.
On death there is no tax before retirement and a Jersey tax levy of 10% after retirement.