FutrellLemley334
Boal and Co has been forced to de-register its Isle of Man based Trinity QROPS from 4 April. The move is due to Isle of Man tax regulation not changing in time for the 6 April 2012 changeover to comply with new HMRC regulations.
Commenting on the choice, Gary Boal, managing director of Boal and Co, states he is convinced it is a short term measure until the Isle of Man alters it tax regime to comply. Existing individuals will be unaffected.
Under the new legal guidelines declared by HMRC, jurisdictions must run a level playing field with regard to the tax treatment of citizen and non-resident QROPS investors by 6 April 2012. Presently Isle of Man QROPS are tax exempt for non-residents, but not for residents.
“Of all of our Isle of Man QROPS, only our “50C” plans suffer from the new eligibility criterion. Whilst Guernsey has used its pensions tax code introducing s157E by 6th April, the government in the Isle of Man has been unsuccessful so far to do exactly the same.
This leaves us no alternative but to de-register Trinity as a QROPS. We are really unhappy at having to do so,” said Gary Boal.
Boal and Co’s Guernsey scheme “Synergy” will be transforming to the new s157E regime on 6th April to ensure that it meets HMRC’s new “benefits exemption test” which will come in on that date.
Boal shows that current members of Trinity are entirely not affected as HMRC alterations are not retrospective. “HMRC’s own FAQs make it abundantly apparent that pre 4/4/2012 transfers are “recognised transfers” if the scheme was a QROPS at the time of transfer,” explains Boals, who also states that the firm has also adapted a new business process to facilitate the availability of Trinity in certain client instances.
