Pension provider Boal & Co has temporarily deregistered its Trinity Qrops amid claims the Isle of Man will fail to adapt its 50c legislation in time to comply with new rules from HM Revenue & Customs.
HMRC’s final Qrops rules, published last month, require Qrops providers to treat non-residents and residents of a jurisdiction in the same way for tax purposes from April 6.
The Isle of Man’s 50c schemes fall foul of this rule by paying benefits to non-residents tax-free while residents are taxed.
Boal & Co managing director Gary Boal says all Isle of Man 50c schemes will have to deregister as Qrops from April 6. He says: “We have been forced to temporarily deregister our 50c Qrops because from April 6, 50c will no longer pass the Qrops test. It will have no implications for existing members.”
The Isle of Man government was unavailable for comment at the time of going to press.
Guernsey Association of Pension Providers Qrops sub-committee chairman Roger Berry says Guernsey has adapted its legislation to meet the new HMRC requirements and will continue to offer Qrops from April 6.