Connect with us

Business

Phuket Business: HMRC approves Gibraltar

Legacy Phuket Gazette

Published

 on 

PHUKET: Another surprising development in a year which has seen the UK pension transfer market repeatedly shaken up and placed on its head, Gibraltar announced last recently that it received confirmation from (Her Majesty’s Revenue & Customs) HMRC that it may resume accepting QROPS (Qualifying Recognized Overseas Pension Schemes) transfers.

The move is extremely surprising because HMRC is not known for endorsing much of anything in writing when it comes to the offshore world.

Gibraltar had originally taken the decision on its own to halt transfers due to concerns by HMRC that after the age 60, residents and non-residents of Gibraltar alike paid no taxes while drawing income from their pensions.

The recent removal of Cyprus as a jurisdiction able to receive transfers, and the fact that Malta has in the past month introduced significant taxation of non-residents’ pension disbursements in the absence of a double taxation agreement, has made it obvious that a key point for HMRC is that completely tax free pension income is not acceptable to them.

Gibraltar passed legislation two months ago to tax pension income at 2.5%, which although close to zero, apparently is good enough for them to receive the green light.

The removal of the ability to transfer pensions to Guernsey earlier in the year and the recent change to the laws in Malta (which previously allowed a retiree in Thailand to draw their pension tax free), have put a great deal of egg on the faces of those of us in the industry who had transfers underway which were railroaded by a flurry of legislative changes.

Many have now taken a ‘wait and see’ approach since HMRC has appeared to be very proactively looking to stop the tax advantages being gained by retirees abroad, even though it theoretically should make no difference to them if some foreign government receives tax from the pension payments (it isn’t going in their own coffers). It has appeared to many to be a case of sour grapes, but this latest move changes that perception and makes it look like they are in fact interested in adding a level of clarity and confidence to the market by confirming that transfers to Gibraltar’s very low tax regime are in fact okay.

The news is very good for those who have held off transferring to Malta, as the trustee fees in Gibraltar are lower and will likely drop as trustee companies will surely flock to the jurisdiction.

Luckily, I have not yet had a chance to transfer anyone into Malta and thus I don’t have to have the difficult conversation explaining why it should be transferred over to Gibraltar.

There is still no inheritance tax collected in Gibraltar and upon death the beneficiaries are paid in full. For those with large pension pots, the ability to drop one’s bracket down from something like 30-40% to 2.5% could mean a very large increase in the net value of their pension.

I would advise anyone who has been considering moving their pension offshore to speak with their advisor about getting it done sooner rather than later, as the one thing this year has shown is that the ability to transfer out of the UK net is definitely not guaranteed to be around forever.

David Mayes MBA lives in Phuket and provides wealth management services to expats around the globe, focusing on UK pension transfers. He can be reached at:
085-335-8573 or david.m@faramond.com.

— David Mayes

 

Get more from The Thaiger

📱 Download our app on Android or iOS
👋 Have your say on our Thailand forums
🔔 Subscribe to our daily email newsletter
📺 Subscribe / Join YouTube for daily shows
👍 Like/Follow us on Facebook
🐦 FOLLOW us on Twitter
📷 FOLLOW us on Instagram

image

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Archiving articles from the Phuket Gazette circa 1998 - 2017. View the Phuket Gazette online archive and Digital Gazette PDF Prints.

Follow Thaiger by email:

Coronavirus (Covid-19)5 mins ago

AstraZeneca Thailand writes open letter to people of Thailand

Koh Samui4 hours ago

Surat Thani announces new Covid-19 measures for Samui Plus

Thailand7 hours ago

His Majesty the King donates 2.8 billion baht in Covid-19 aid

Welcome back to Thailand!

Thaiger is getting behind local businesses for the restart of tourism in Thailand - up to 50% discounts across all advertising packages!

Coronavirus (Covid-19)8 hours ago

Covid UPDATE Provinces: 14,260 new infections, 119 deaths

Coronavirus (Covid-19)8 hours ago

Vaccination registration open for foreign residents over 60 in Bangkok

Coronavirus (Covid-19)10 hours ago

Autopsy results for woman who died after mixing vaccines

image
Join the conversation on the Thaiger Talk forums today!
Coronavirus (Covid-19)14 hours ago

Covid UPDATE Saturday: 14,260 new infections, news briefs

Thailand19 hours ago

Department head predicts Covid-19 could last up to another year

World21 hours ago

Swedish prison hostage situation resolved with pizza

Thailand22 hours ago

Minister: Foreigners, migrant workers are cared for amid Covid-19

Coronavirus (Covid-19)1 day ago

“Withhold Intubation” for certain older Thammasat Hospital patients

Coronavirus (Covid-19)1 day ago

Bang Sue vaccination centre open for expats 60+, under must wait

Coronavirus News & Updates1 day ago

“Covid-19” deaths said to cause crematorium in Bangkok to partially collapse

Thailand1 day ago

Nakhon Sawan farmers make large profits growing fingerroot as Covid cure

Coronavirus (Covid-19)1 day ago

Leaked document: military arranging private Moderna vaccines

Thailand5 months ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism5 months ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket5 months ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism5 months ago

Phuket Thai food treats you need to try | VIDEO

Thailand5 months ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism5 months ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand6 months ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand6 months ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand6 months ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand6 months ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand6 months ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand6 months ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand6 months ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand6 months ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Thailand7 months ago

Thailand News Today | Southern floods, Face mask fines, Thai Air Asia woes | January 8

Trending