HM GOVERNMENT OF GIBRALTAR
Pension professionals in Gibraltar will soon be able to offer Qualifying Non-UK Pension Schemes (QNUPS) from Gibraltar. Government has, in consultation with the Gibraltar Association of Pension Fund Administrators (GAPFA) worked to enable the sector to offer Gibraltar QNUPS. Discussions then took place between the Government of Gibraltar and HM Revenue and Customs (HMRC) in the United Kingdom.
Albert Isola, Minister for Financial Services stated “This really is good news. The ability to provide QNUPS from Gibraltar builds on the success of our QROPS business established over the past 18 months. I would like to thank Senior Executive Michael Ashton for his efforts in delivering this important product for Gibraltar and my predecessor the Hon Gilbert Licudi QC for the initiative and support he provided in the introduction of the earlier QROPS initiative, which this now follows. We will shortly be introducing an amendment to the legislation to allow QNUPS from Gibraltar. This is a further step in establishing Gibraltar as an International pensions centre and follows on from the recently announced initiative by Gibraltar Finance to enable insurance linked securities (ILS) to be offered from Gibraltar. We will continue to work closely with the private sector in the further development of this important industry”
HMRC defines a QNUPS as a pension scheme that is not a registered pension scheme but is established in a country or territory outside the United Kingdom. In order to be a QNUPS, the scheme must fulfil certain conditions.
QNUPS were introduced by HMRC on the 15th of February 2010. A QNUPS can invest in a wide range of assets and a major attraction for establishing a QNUPS is that it is exempt from United Kingdom inheritance tax on the member’s death.
Withdrawals from Gibraltar QNUPS are proposed to be subject to a tax rate of 2.5% similar to the 2.5% tax charge introduced for Gibraltar QROPS in June 2012. With the utmost probity and care Gibraltar’s pension professionals will soon be able to offer greater choice to their clients with the introduction of QNUPS.