QROPS Guernsey

Guernsey has long enjoyed an international reputation has a stable, low tax offshore financial centre servicing British expats.

QROPS pensions for British expats have been hosted on the Channel Island since the schemes were established by a change of law on April 6, 2006.

The jurisdiction has acted as a magnet pulling QROPS investors because many expats feel more confident in dealing with a pension provider that speaks English, has historical ties with the mainland and offers low tax benefits.

Now those same benefits are available worldwide to British expats and anyone else who has UK pension rights through the popularity of QROPS schemes.

Guernsey QROPS offer 25% loans to members

Guernsey QROPS allow expats to settle wherever they want in the world – or even to travel between homes in different countries outside the UK – while paying a 25% tax free cash lump sum and gross pension benefits that are taxable where the pension investor is resident, not in Guernsey.

So residence restrictions that often mean only the wealthy can move to Guernsey do not apply to taking out a QROPS pension.

A big draw for Guernsey QROPS pensions is a facility to borrow an additional 25% of the offshore pension. Meeting certain requirements and conditions.

Discuss this in detail with a qualified financial adviser because although this benefit is written in to Guernsey QROPS rules, not all providers include the option in their schemes.

Don’t forget that although Guernsey is a Channel Islands QROPS, rival products are also offered in Jersey that do not necessarily follow the same rules.

Competition pushes down many Guernsey QROPS charges

Guernsey QROPS providers also operate in a highly competitive market. The nature of the island’s offshore financial services makes them attractive to expats, and because so many companies want a slice of the investment pie, this pushes down costs for anyone seeking a Guernsey based QROPS pension.

This also means Guernsey QROPS offer all the bells and whistles like access to a flexible wide range of investments and self managed QROPS.

At one stage, Guernsey did face some criticism from HM Revenue and Customs over administration of trusts, but this exploitation of QROPS rules was quickly dealt with by the Guernsey financial regulator.

The general view is this does not reflect badly on Guernsey as a QROPS jurisdiction, but was a one-off involving manipulation of scheme rules.

More information about Guernsey QROPS

To better understand some of the tax advantages of a Guernsey QROPS, discuss investment options with a regulated financial adviser. Contact QROPS.net and we can recommend a qualified QROPS professional who can help you.