Why is Guernsey one of the best QROPS Jurisdictions?

Guernsey is an independent, well regulated and internationally accepted jurisdiction with a firm framework of legislation in the financial services sector. Pension providers on the island have worked closely with HMRC to ensure a robust QROPS offering for both its resident and international clients.

Guernsey is a neutral jurisdiction which allows tax-efficient structures. This means that income and capital gains from the assets within your plan are not subject to Guernsey tax. Therefore, the assets within your plan grow in a tax efficient environment.

guernseyYou can choose your QROPS to be denominated in a hard currency (Pounds, Dollars or Euros).

Guernsey pays out pension benefits gross to non-Guernsey residents.

Although Guernsey is completely independent from the UK, they are a Crown dependency and their rules and regulations are extremely similar to those in the UK. Due to this relationship it is extremely unlikely that the HMRC will rescind Guernsey as a QROPS pension transfer jurisdiction. They have already done this with Singapore, due to its difference.

Questions on Guernsey as your QROPS Jurisdiction

  1. Is Income Drawdown Available?

    • Yes.
    • During first years of non-UK residency income is subject to UK GAD rates, both USP and ASP.
    • After 5 full years of non-UK residency benefits may be paid under more flexible Guernsey rules. Income is paid gross.

  2. What is the Maximum amount of lump sum available at normal retirement age?

    • During first 5 years of non-UK residency 25% of tax relieved funds transferred.
    • After 5 full years of non-UK residency 25% of fund.
    • Subject to trustee discretion.

  3. How is the pension payable calculated?

    • No insurance annuity required, payments made gross.
    • Subject to UK rules and GAD tables with less than 5 years of non UK residence, otherwise more flexible Guernsey rules may apply.

  4. What happens if the client dies before retirement (during the first 5 years of non-UK residency)?

    • Balance of fund payable in accordance with member’s wishes.
    • No Guernsey tax is payable pre-retirement.

  5. What happens if the client dies before retirement (after 5 years of non-UK residency)?

    • Balance of fund payable in accordance with member’s wishes.
    • No Guernsey tax is payable pre-retirement.

  6. What happes if the client dies after retirement (during the first 5 years of non-UK residency)?

    • Post retirement pre 75, return of fund less 35% tax charge.
    • Post retirement post 75, return of fund less tax.

  7. What happens if the client dies after retirement (after 5 years of non-UK residency)?

    Both pre & post 75

    • a spouse’s/dependant’s pension may be paid.
    • No Guernsey tax and 100% paid to whoever is nominated by the member.
    • Not reportable to HMRC.

  8. What are the tax rates on taking a pension if the client is resident in the same jurisdiction as the QROPS?

    • 20% tax.

  9. What are the tax rates on taking a pension if the client is resident outside of the jurisdiction of the QROPS?

    • No Guernsey tax but there may be taxes in the country which the client is resident.

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