Isle of Man based specialist pension consultants, Fedelta Pensions, has introduced its International Pension Scheme to the offshore market. The scheme is based on the UK small self-administered scheme but provides for greater flexibility as it is not restricted by the SSAS investment guidelines.
Fedelta is targeting the scheme at employers of UK domiciled ex-patriates currently working abroad, but intending to return to UK. The scheme takes advantage of the Isle of Man income tax regulations. This allows the members of employer sponsored schemes to roll up their funds tax-free and then either draw a pension from the scheme, or take the entire fund tax-free without having to buy an annuity when back in the UK.
The main advantage is the ability to leave the scheme's funds tax protected when returning to the UK. It also puts the client in the driving seat with regard to the schemes charges, as these are calculated on a time spent basis. The active investor can therefore take the opportunity to reduce administration charges by taking a more proactive role.