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Where Taxpayers and Advisers Meet

Moving to Isle of Man

laurie
Posts:2
Joined:Wed Aug 06, 2008 3:45 pm

Postby laurie » Wed Nov 01, 2006 4:12 am

I have taken early retirement and hope to move to Isle of Man next year. Can I opt to get my company pension taxed on Island or do all pensions including state originating from UK have to be taxed in UK. Thankyou

tax me less!
Posts:983
Joined:Wed Aug 06, 2008 3:29 pm

Postby tax me less! » Wed Nov 01, 2006 6:48 am

I would rephrase the question. It is frequently much better to move the entire fund to the IoM as against UK annuity income. Take specialist advice in the IoM.

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Wed Nov 01, 2006 7:54 am

IIRC, most company pension schemes include a clause about being paid in £ Sterling on London.

If you can obtain HMRC approval for a Transfer to an Off-shore entity, that might assist you.

Taxbar
Posts:1187
Joined:Wed Aug 06, 2008 2:19 pm

Postby Taxbar » Wed Nov 01, 2006 9:12 am

It all depends on the size of your fund.

If its £1.5 m or less then it can be transferred to the IOM.

There are some requirements and you will have much more flexibility there as the UK limits 25% tax free and annual income limits will not apply.

This requires specialist UK advice, not IOM advice as suggested above.

Daniel Feingold
STP
info@stratax.co.uk

King_Maker
Posts:6538
Joined:Wed Aug 06, 2008 3:22 pm

Postby King_Maker » Wed Nov 01, 2006 9:56 am

Daniel,

Are you saying HMRC are now relatively relaxed post A Day about Pension Fund migration? If so, is that merely within the EU or more distant countries?

It proved very difficult about 5 years ago when a client was trying to transfer to Lichentein (I think?). And the "fees" were pretty steep too, IIRC.

Taxbar
Posts:1187
Joined:Wed Aug 06, 2008 2:19 pm

Postby Taxbar » Thu Nov 02, 2006 6:06 am

Prior to A' day transfers were only permitted to countries with reciprocal pension agreements.

Now any Country that has an acceptable form of pension fund laws and regulations should qualify.

The other criteria is the size of the fund. If its below the lifetime limit, then no problems.

All of it needs specialist tax planning here and co-ordination with experts in country of transfer.

N.B. many countries have no upfront, or fund relief and so do NOT tax pensions at all!

Daniel Feingold
STP
info@stratax.co.uk

tax me less!
Posts:983
Joined:Wed Aug 06, 2008 3:29 pm

Postby tax me less! » Fri Nov 03, 2006 2:17 am

1. You may just have missed that from 6 September 2006 HMRC are publishing a monthly updated list of QROPS at: http://www.hmrc.gov.uk/pensionschemes/qrops-list.htm

2. Daniel is correct that espcially within the EU there should be no barriers on transfer because the EU forced the UK to change our rules.

3. Slovakia gives a tax deduction on contributions, tax-free growth and no tax on the money when withdrawn. It seems quite plausible that many EU residents will choose to move there for retirement and take and spend all their pension savings!

laurie
Posts:2
Joined:Wed Aug 06, 2008 3:45 pm

Postby laurie » Mon Nov 06, 2006 2:56 am

Thank you all for you help, it seems as if my best option is to find a UK specialist
Laurie


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