QuilesMatlock584

Boal and Co has been made to de-register its Isle of Man based Trinity QROPS from 4 April. The move is due to Isle of Man tax legal guidelines not transforming in time for the 6 April 2012 changeover to abide by new HMRC regulations.

Commenting on the decision, Gary Boal, managing director of Boal and Co, states that he feels it is a temporary measure until the Isle of Man alters it tax regime to comply. Existing investors will be not affected.

QROPS Advice

Under the new legal guidelines declared by HMRC, jurisdictions must operate a degree playing field with regard to the tax treatment of resident and non-resident QROPS traders by 6 April 2012. At the moment Isle of Man QROPS are tax exempt for non-residents, but not for residents.

“Of all of our Isle of Man QROPS, only our “50C” plans suffer from the new eligibility criterion. Whilst Guernsey has used its pensions tax code introducing s157E by 6th April, the government in the Isle of Man has failed so far to do the exact same.

This leaves us no alternative but to de-register Trinity as a QROPS. We are extremely frustrated at having to do so,” said Gary Boal.

Boal and Co’s Guernsey scheme “Synergy” will be converting to the new s157E regime on 6th April to make certain it meets HMRC’s new “benefits exemption test” which comes in on that date.

Boal confirms that current members of Trinity are fully unaffected as HMRC shifts are not retrospective. “HMRC’s own FAQs make it abundantly clear that pre 4/4/2012 transfers are “recognised transfers” if the scheme was a QROPS at the time of transfer,” explains Boals, who also claims that the firm has also adjusted a new business process to facilitate the provision of Trinity in certain client circumstances.