UK based QROPS (Qualifying Recognized Overseas Pension Scheme) advice specialists, Global QROPS Ltd, are aware of the uncertainty regarding the status of QROPS in the Gibraltar jurisdiction.
Due to a technicality over the tax ‘paid’ on income from Gibraltar QROPS, the UK’s HMRC (Her Majesty’s Revenue and Customs) and the Association of Pension Fund Administrators (APFA) in Gibraltar are in discussions as to whether Gibraltar schemes can continue to accept UK pension transfer funds.
As a result of the current uncertainty hanging over their schemes, Gibraltar schemes have taken the stance to suspend receipt of UK pension transfer money. This situation will obviously be reviewed as and when HMRC confirm what they intend to do.
The situation, at the moment, means that there are some UK pension members, who are in the process of a UK pension transfer to a Gibraltar QROPS, that do not know whether or when it will be completed. Whereas the Gibraltar QROPS providers are prepared to continue to process the paperwork, to make a transfer in happen, they will not physically accept any funds until HMRC confirm that Gibraltar schemes are permitted to do so.
The results of the discussions between APFA and HMRC, which have been ongoing for some time, will determine as to whether Gibraltar QROPS can continue and as to whether any pending UK pension transfers can be finalized. In the meantime, Global QROPS Ltd are in a position to provide some guidance to clients on the situation.
