MW Pensions QROPS
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MW SIPP Administration (IOM) Ltd
An independent SIPP Provider established on the Isle of Man since early 2007 to provide SIPPs to Isle of Man residents. The scheme, MW Self Invested Personal Pension Scheme is authorised on the IOM by the Insurance and Pensions Authority and approved by the Income Tax Division of the Isle of Man Treasury.
The scheme is set up to use all the functionality of the Ascentric website.
The scheme was opened up to non residents of the IOM in 2008 and registered as a QROPS with HMRC, (see below). It has been able to accept Protected Rights since October 2008.
What is QROPS?
It’s an acronym for "Qualifying Registered Overseas Pension Scheme" with HMRC which was introduced in April 2006 and is basically a process for transferring funds from UK pensions to overseas pension funds – in this case IOM.
To achieve QROPS status a scheme must fulfil certain criteria set by HMRC, which our scheme does. The scheme can be seen on the QROPS list on HMRC website.
To see more about QROPS Transfers click here
Who can benefit from QROPS?
There are four groups of individuals who can benefit from QROPS :
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IOM residents with UK pension benefits
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UK expats with UK pension benefits
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UK residents who are planning to leave the UK who have or can plan a UK pension
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Foreign nationals with UK pension benefits
What about UK Expats?
Several hundred thousand people leave the UK each year and many have accrued UK pension benefits, some of them substantial.
Often there can be substantial benefits to be gained by transferring these funds to our scheme – it is at the very least an excellent planning opportunity, but to gain full value for a client, it may be that tax advice may be necessary, covering such topics as Residence and Domicile.
To learn more about this click here
Why the IOM?
It is a Crown Protectorate, but not part of the UK or EU. It is independent with its own parliament and can raise its own taxes.
It is regarded as a well regulated and run jurisdiction by the likes of the OECD and IMF and earlier this year was placed on the ‘white list’ following the G20 Summit. It has a policy of establishing Double Taxation Agreements and Information Sharing Agreements with other governments.
It has a ‘benign’ tax regime with lower rates of income tax and nil rates of CT, CGT and IHT.
The way it deals with pensions is quite different in many ways, as can be seen on the previous link (above)
Some cautious comments
QROPS can be a bit of a minefield with some very dubious products and structures on offer, often at extremely high fee levels. So beware of any scheme which offers 100% fund withdrawal, or offers to falsify an individual’s residency status or plays with the provisions of Trust Law. The best rule of thumb is if it looks too good to be true, it probably is.
If QROPS is handled properly there are significant benefits without resort to dubious structures or trust-busting exercises.
For more information about our MW IOM SIPP and QROPS options please click on this link to our website www.mwpensions.co.im
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