Pensions  

Qrops dispute coming to an end: London & Colonial

In September last year, Gibraltar pension trustees halted UK transfers to the country pending the resolution of a dispute over the territory's levying of a zero per cent income tax charge on pension income for those aged over 60.

HMRC said in a statement at the time that pension income from a Qrops must be taxed and stipulated that a zero per cent rate was inconsistent with a 'progressive' tax system.

The Association of Pension Fund Administrators in Gibraltar has been leading the negotiations with HMRC, which has left many Qrops providers and their customers in limbo.

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Adam Wrench, product development manager for London & Colonial, said: "Following our calls for HMRC to work with the Gibraltar authorities to end the Qrops uncertainty, it appears that common sense has eventually prevailed and we are very pleased to see that this issue appears to have been resolved.

"We are fully aware that HMRC has to simply interpret and implement the legislation given to it within the constraints of its remit. However, we feel that, generally, most issues can be resolved much more effectively by consultation with industry partners."

Mr Wrench said L&C was grateful to IFAs for their support in that they had stockpiled Qrops cases rather than resubmitting their business to another provider.

Paul Davies, director of independent financial Qrops advisers, Global Qrops, said: "If this is true, it is good news. The more Qrops that are available, the more competitive the market. Before the problems arose in Gibraltar, it was quite competitive in terms of the benefits of their schemes and the costs."

Andrew Bennett, a spokesman for HMRC, said that there had been no agreement made.