While the UK government has extended pension freedoms in theory to offshore qualifying recognised overseas pension schemes, this is only one half of the equation and each individual jurisdiction will need to bring in legislation allowing for open access.
Paul Forman, head of sales for Qrops firm Momentum Pensions, explained to FTAdviser that the same statutory instrument which applies to UK pensions, applies throughout the international community for ex-pats.
However, as offshore schemes are established under the laws of the country in which they are based, the UK allowing freedoms for all offshore schemes means nothing if the local jurisdiction does not offer freedoms on their side.
Mr Forman said: “Malta have adopted the changes with effect from 7 January, so will be ready come 6 April.
“Gibraltar believe they have the necessary flexibility in their existing legislation, but to be safe have consulted with HMRC during the four week consultation period to confirm that their understanding is indeed correct. Feedback suggests that it is and they will also be good to go on 6 April.
He added: “[For the] Isle of Man [there has been] no public statement as yet but I understand that the tax office and Insurance and Pension Authority are meeting over the next week or so to agree their policy and will announce it very shortly.”
Stewart Davies, chief executive officer of Momentum Pensions, said he has seen a recent increase in demand to transfer current Qrops schemes.
Momentum Pensions has launched a free qualifying recognised overseas pension scheme (Qrops) switch scheme, as a result of what it suggests will be significantly increased in demand in line with the April pension reforms.
The scheme includes free set-up, no administration charges for 12 months and the immediate ability to transfer into any other Momentum scheme at no cost. It will run for the next three months and administration fees, which are fixed, will only be charged after year one.
ruth.gillbe@ft.com
