A significant proportion of Guernsey pension schemes are set to lose their approved qualifying registered overseas pension scheme status when rules are tightened on Thursday.
Guernsey Finance, the body which promotes the island's finance industry, said HM Revenue & Customs will change its approved QROPS list later this week so only schemes for ‘Guernsey residents' will be valid.
HMRC has also said it will also disqualify Guernsey's new s157E pension schemes from being recognised as QROPS. However, the disqualification is not retrospective so any transfers already made will not be affected.
Guernsey Finance deputy chief executive Fiona Le Poidevin said the body was "extremely disappointed".
She said: "Guernsey has always aimed to comply with HMRC's regulations and therefore ensure that we continue to provide schemes which satisfy the criteria for being QROPS. It will be very interesting to see if only Guernsey schemes are impacted or whether other jurisdictions will find that the further changes coming into effect mean that their schemes are delisted as well."
Le Poidevin said while she understood s157E schemes would also not comply HMRC had not given its reasoning.
In December last year HMRC launched an eight-week consultation on a series of proposed amendments to the regulations regarding QROPS. The final proposals were outlined in the Budget and took effect on 6 April.
The legislation fell short of insisting that residents and non-residents must be treated equally in terms of tax on benefits paid within any QROPS scheme.
However, it not effectively states any scheme wishing to be a QROPS from 6 April must offer equal treatment to residents as non-residents.
On gardening leave
'Stripping onion layers down'
400 students at academy