HM Revenue and Customs has signalled the official end of the Isle of Man 50c QROPS review by including another offshore pension provider on the tax man’s list of providers.
SiPP Specialists Ltd, based in Douglas, Isle of Man, has launched the SIPP Specialists 2010 scheme and received a QROPS registration number from HMRC.
The move shows HMRC has finished the IoM 50c QROPS review, which has run since the end of 2010 after written complaints were made following the launch of the first 50c QROPS in September 2010.
For pension and retirement savers, this gives the Isle of Man 50c pension a clean bill of health and opens the way for immediate transfers from UK pension funds.
Some advisers and providers alleged the 50c scheme – named after Section 50c of the IoM’s pension legislation – did not meet the requirements of a QROPS scheme.
After a lengthy inquiry, HMRC has made no official announcement, but appears to disagree with the complaints.
SiPP Specialist director Dougie Elliott claims the new QROPS will offer competitive fees and top customer service.
The main difference between the Isle of Man 50c QROPS with with Guernsey QROPS is the IoM offshore pension gives a 30% tax free lump sum, while most Guernsey schemes offer 25%.
Both the Isle of Man and Guernsey QROPS have the same tax and investment benefits for ex pats switching their pensions offshore.
Much of the haggling over whether the Isle of Man 50c QROPS met HMRC rules related to rival advisers and providers trying to make up the business edge the extra tax free lump sum gives to IoM pension providers.
SiPP Specialist took a swipe at these industry insiders by stating the Isle of Man did not need a voluntary QROPS code of conduct like Guernsey because the financial jurisdiction has tighter financial regulation.
The firm is also planning to offer a Gibraltar QROPS.