Guernsey QROPS clampdown

HMRC has been concerned about the uses to which qualifying recognised overseas pension schemes (QROPS) might be put. It is especially wary of the possibilities for using the schemes to accumulate tax-preferred funds from the UK before paying tax-free benefits following a period of UK residence. Baker Tilly said the same rules must apply to residents and non-residents, ensuring any lump sum payments would be limited to 25% of the fund, among other restrictions of Guernsey’s proposed QROPS clampdown. “Where a transfer of funds held on behalf of a non-resident which originated from a UK appr...