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The Island’s pension regulations are robust yet highly flexible, allowing corporate clients the freedom to tailor international retirement solutions to the diverse demands of their international operations. Being in a respected and mature international finance centre, the Isle of Man’s scheme administrators, and support services such as banks and investment managers, are well used to the rigours of multi-currency, cross border pension arrangements.
For expatriate individuals who are looking to save for their retirement, Isle of Man pension companies provide a range of individual arrangements to suit their savings needs, from short-term to long-term, and from regular payments to lump sums.
All pension funds on the Isle of Man grow free of any Isle of Man tax and their providers are regulated by the Isle of Man Financial Services Authority (FSA).
For senior employees where traditional pensions scheme do not meet their requirements, a company may wish to provide a bespoke pension or long-term reward arrangement. Both national and global employers alike are increasingly looking to use specialist vehicles for equalising reward schemes across national frontiers. Many have preferred the Isle of Man recognising the stability, long established Trust and Company law as well as the security and regulation offered by the Island’s regulation of its finance industry.
A Qualifying Recognised Overseas Pensions Scheme (QROPS) established in the Isle of Man can be highly attractive for individuals moving to the Island, as evidenced by the large number of Isle of Man schemes on the HMRC QROPS list. In addition the Island has a growing network of international double tax treaties which potentially enable scheme members to take pension benefits from an Isle of Man QROPS in a tax efficient manner.
A QNUPS is a Qualifying Non UK Pension Scheme and was introduced in the UK in 2010. Creating the ability to fund for retirement, in a tax efficient manner QNUPS are becoming popular for those wishing to fund over and above any retirement planning in place already. As a recognised pension jurisdiction, the Isle of Man is well placed to provide these schemes which can be tailored in line with individual requirements. There are no reporting requirements from the QNUPS to HMRC, and QNUPS benefit from a UK IHT exemption in respect of UK tax relieved pension funds that have been transferred to a QNUPS (which may also be a QROPS), contributions to a QNUPS by a current or previous UK resident and assets held by a QNUPS.
