The big question about investing in a QROPS is where is the most tax efficient place to base your investment?
The global economy is in a state of flux as the larger economic powers pressurise former tax havens in to lifting their curtain of secrecy for wealthy individuals, companies and financial organisations.
Countries that were popular a year ago are now looking at little rocky as long-term homes for your money – like the Cayman Islands, British Virgin Islands and other Caribbean financial hotspots.
HM Revenue and Customs has drawn a line – tax evasion anywhere will not be tolerated and action will be taken against those involved.
HMRC also hints that a continuous review of QROPS tax jurisdictions rolls on.
Last year, the QROPS status of providers in Singapore was withdrawn due to tax irregularities and the rock of Gibraltar does not look so solid at the moment.
Talks continue between HMRC and the local QROPS providers and tax authorities about income tax band irregularities that have led providers based there to hold off transferring any funds in to QROPS schemes.
QROPS provider representatives in Gibraltar were confident that the issue would be sorted out by the end of September – now we are pushing the end of October and still no news.
So where do you go to keep your money safe and secure?
The most popular QROPS countries are currently Guernsey, the Isle of Man, Jersey and New Zealand.
Of course, they all have a British connection in common that makes UK investors feel a little more confident, but then so do Singapore and Gibraltar.
A low tax environment comes high on that list when looking for a home for a QROPS – Guernsey compares well with the Isle of Man with 0% inheritance tax and 0% income tax comparing favourably with the Isle of Man’s 7.5% IHT and 18% income tax rates.
Making a decision with the whole of the world to choose from can be daunting, so perhaps the first and most important step in stetting up your QROPS is selecting an independent, professional QROPS.net who can cut their way through the sales pitch to tailor a product that matches your needs.
