To enable an individual to move his benefits in an approved United Kingdom Pension Scheme to an approved Isle of Man Pension Scheme and avail of the main benefit of not having to purchase an Annuity on retirement, the following procedures have to be followed.
- The individual must become a non taxable resident of the United Kingdom.
- The individual must become a taxable resident of the Isle of Man, which is achieved by leasing or purchasing a residential property. There is no requirement on the member to prove residence for a minimum number of days in the year.
- The member must be employed by an Isle of Man Resident Company.
- Having reached this stage, the employment company sets up a Small Self-Administered Scheme and approval for the scheme is sought from the Assessor of Income Tax.
- On receiving approval the individual is then invited to become a member of the Isle of Man Scheme and the Trustees make an application to the Trustees of the members U.K. Scheme for a transfer of his/her pension fund. In the majority of cases it is not necessary to obtain Inland Revenue approval for the transfer to take place, as there is a reciprocal arrangement between both countries. It is however important that the UK Trustees advise the Pension Schemes Office within seven days of the transfer taking place.
- Now that the members Transfer is a part of the Isle of Man Scheme there is no requirement on his/her part to purchase an ANNUITY on retirement. There is also no requirement on his/her part to transfer the Fund back to the UK should he/she return there at some future date.
- Under pending legislation it is likely that at retirement the member's entitlement will be greater than he/she would have received had their pension fund remained in the U.K.
We also specialise in transfers to other jurisdictions such as Gibraltar, especially for those with High Net Worth Status, Bermuda, and many others including transfers back to the U.K.
The content of this article does not constitute legal advice and should not be relied on in that way. Specific advice should be sought about your specific circumstances.