Tynwald, the Isle of Man's parliament, has approved an order creating a new type of pension arrangement that adds to the Island's existing local and international pension legislation, reinforcing the Isle of Man's reputation at the forefront of international pension provision. It is hoped that this scheme will meet Her Majesty's Revenue and Customs' regulations on Qualifying Recognised Overseas Pension Schemes (QROPS).
The new pension scheme can only be provided by registered Isle of Man resident pension providers who are regulated by the Isle of Man's Insurance and Pensions Authority. As such, investors in these schemes can be assured that they are operating in a well-regulated jurisdiction.
In addition to providing a new retirement savings option for Island-based members, the possibility of QROPS status for pensions approved under this new arrangement gives the Isle of Man's pension sector increased opportunities to market these schemes to British expatriates who have retired outside the UK.
As well as having the ability to utilise pension drawdown applicable to Isle of Man personal pension schemes, a lump sum of up to 30% of the fund is available. Any payment made from the new scheme to a non-Isle of Man resident will be paid gross and will not be subject to Isle of Man income tax.
Minister for Economic Development, Allan Bell MHK, commented:"This new pensions regime shows that the Isle of Man continues to be the leading jurisdiction for professional, innovative, well-regulated pensions. I am sure this will be welcomed by the Isle of Man pensions industry and will enable them to increase the amount of business placed in the Isle of Man"
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