The UK Government announced changes to the Qualifying Recognised Overseas Pension Scheme (QROPS) regime on 21 March 2012. On 5 April 2012 the QROPS list published by HM Revenue & Customs was temporarily suspended, and a new list published yesterday (12 April) now shows only those schemes which meet the new UK rules.
Three types of Isle of Man pension scheme were able to seek QROPS approval under the original rules: those set up under the Income Tax (Retirement Benefits Schemes) Act 1978, Part I of the Income Tax Act 1989 and section 50C of the Income Tax Act 1970. While 50C schemes no longer meet the UK QROPS rules and have been removed from the published list, all other Isle of Man QROPS remain approved by the UK.
In addition, as was made clear by HMRC:
'If a pension scheme that is a QROPS on 5 April 2012 no longer meets the conditions to be a QROPS on 6 April 2012, members of that pension scheme who have already transferred their pension savings will be able to remain as members and receive a pension paid from the sums transferred without incurring additional tax charges.'
Treasury Minister Eddie Teare, MHK, said:
'The UK has made clear that it wishes a QROPS to be broadly similar to a UK registered pension scheme. Although I am disappointed that our 50C schemes can no longer be QROPS, the Isle of Man retains a powerful international pension management offering through having both occupational and personal pension schemes which can be approved as QROPS, the confidence which comes from having the double regulatory oversight of the Insurance and Pensions Authority and the Assessor of Income Tax, and of course a group of excellent providers in our pension sector. We can move on from this point to further consolidate our position as a key pension management jurisdiction and continue both to grow and diversify our economy.'
