The Optimus Retirement Benefit Schemes offer a wide range of pension solutions to meet your specific needs, from a one stop shop solution through to

Size: px

Start display at page:

Download "The Optimus Retirement Benefit Schemes offer a wide range of pension solutions to meet your specific needs, from a one stop shop solution through to"

Roger Reeves
5 years ago
Views:

1 The Optimus Retirement Benefit Schemes offer a wide range of pension solutions to meet your specific needs, from a one stop shop solution through to open architecture fully flexible offerings

2 Integrated Capabilities (Malta) Limited Introduction With several well designed pension offerings, a wealth of experience in administration we have the ability to meet the needs of the client, as well as intermediaries. This guide is aimed at professional advisers and is not to be construed as advice. The content of this guide is meant for informational purposes only.

3 What is a QROPS? A Qualifying Recognised Overseas Pension Scheme ( QROPS ) is designed to accept transfers from members of a UK registered pension schemes who have already emigrated abroad and have no intention of returning to the UK, or members who have a definite intention to retire abroad. Benefits of a QROPS Benefits start after five years. Benefits to beneficiaries No 55% inheritance tax Drawdown - Benefits can be taken once they turn 50 (55 for UK pension transfers) and a 30% Pension Commencement Lump Sum can be taken Wide investment options Greater tax efficiency In addition, advantage can be obtained from the numerous Double Taxation Treaties Malta has. Who is eligible for a QROPS? Most clients will be eligible for a QROPS, however, there are some restrictions: Only certain pension schemes can be transferred If a member is past the scheme retirement age it may not be possible for an occupational pension that is in or not in payment to be transferred It is not possible to transfer a UK State Pension to a QROPS Transfers under 40,000 may not be viable, due to the charges applicable to a QROPS and the annual tax allowances in the UK Annual allowance limits on transfers from UK schemes apply Any transfers in excess of 1.25m may be subject to an additional tax charge unless the client has secured protection Reporting Requirements HMRC requires all QROPS providers to notify them of any payments to members made from transferred pensions. This does not apply if the member has not been resident in the UK for any of the preceding five tax years. This is an important rule as it determines the basis on what benefits can be achieved through a QROPS. During the first five years benefits are the same as in the UK but once the member has been a non-uk resident for five full tax years: In some cases a member can take benefits from 50 (55 for UK pension transfers) 30% pension commencement lump sum can be requested (if no lump sum has previously been taken) Incur no UK tax on death Optimus Retirement Benefit Schemes - MALTA

4 What is a QNUPS? A Qualifying Non-UK Pension Scheme ( QNUPS ) can only accept non-pension assets. With the recent change in the maximum UK pension contributions being reduced a QNUPS gives UK residents the opportunity to have an additional pension which is exempt from UK Inheritance Tax and pass on their assets free from death duties to their beneficiaries. Benefits of a QNUPS Additional benefits can include: Capital Gains tax free growth There is no upper limit on how much you can contribute into a QNUPS; this will be of particular interest to medium and high net worth individuals Flexibility to be structured in such a way as to avoid local tax liabilities dependent upon residency Wide investment powers You can continue to invest even after you have retired Potentially avoids local inheritance tax and forced heirship laws, giving you complete control over how you wish to disseminate your estate Discretion over distribution of residual fund upon death of member Correct structuring you can reduce UK tax liabilities on QNUPS assets A QNUPS can hold most investments including residential property and other assets such as antiques, which are not typically held by other pension schemes. A QNUPS cannot typically be accessed before the age of 55. At least 70% of the members fund must be reserved to provide an income for life in retirement. There are no reporting requirements for Trustees, but local reporting may be required in accordance with the jurisdictional rules and we can provide guidance on this. Who is eligible for a QNUPS? A QNUPS is available to UK resident/domicile and non-resident members. The utilisation of a QNUPS in both instances should be discussed with your tax advisor. What can be contributed to a QNUPS? A transfer in-specie to the pension scheme of non pension assets such as property or other personal assets is possible in addition to cash. These contributions are immediately out of the members estate. Optimus Retirement Benefit Schemes - MALTA

About Integrated-Capabilities (Malta) Limited ( ICML ) ICML administration team provides expertise and support to intermediaries and clients, providing reassurance on the security and advantages that

5 About Integrated-Capabilities (Malta) Limited ( ICML ) ICML administration team provides expertise and support to intermediaries and clients, providing reassurance on the security and advantages that QROPS can provide to their clients. ICML will work with you from initial no-obligation discussions to providing the finer details of the schemes so you and your advisor can rest assured that the best solutions are available. ICML are independent of any other financial institution and do not provide investment advice, leaving you free to continue to act as adviser to your clients. About Malta and QROPS Malta is a well regulated flexible jurisdiction and a full EU and Commonwealth member with a history of economic and financial security. Malta is on the OECD White List for global standards in tax co-operation and information exchange. Every pension scheme has to be independently regulated by the Malta Financial Services Authority (MFSA), giving the island very high levels of security and confidentiality. Malta has an impressive network of Double Taxation Agreements. Trustees fees relating to the schemes are not subject to VAT. Withholding tax of up to 35% is levied on countries that either have no DTA or a limited remittance based agreement. Optimus Retirement Benefit Schemes - MALTA

6 For further information please contact: Integrated-Capabilities (Malta) Ltd 45/13 Strait Street Valletta VLT 1434 Malta T: E: Optimus Pension Administrators Limited St Mary s, The Parade Castletown Isle of Man IM9 1LG T: E: Regulation The Optimus Retirement Benefit Scheme No. 1 and Optimus Retirement Benefit Scheme No.2 are registered as Retirement Schemes by the Malta Financial Services Authority (MFSA). Optimus Retirement Benefit Scheme No. 1 is registered with HMRC as an approved scheme. Integrated-Capabilities (Malta) Limited is authorised and regulated by the MFSA. Integrated-Capabilities (Malta) Limited is registered as an Administrator for retirement schemes with the MFSA. Optimus Pension Administrators Limited is registered with the Isle of Man Insurance and Pension Authority. There is no statutory provision for compensation in the case where a Scheme is unable to satisfy the liabilities attributed to it and the Scheme shall not be held responsible for compensation in such an event. The Registration of the Scheme is not an endorsement by the MFSA of the Scheme s financial performance.

QROPS. Dr Doran Magri Demajo

QROPS. Dr Doran Magri Demajo QROPS Dr Doran Magri Demajo A new international pension scheme launched in April 2006. It allows for non-uk tax residents who are overseas and currently hold a UK pension which is registered under her