According to director Tony Chamberlain, the product would prove especially attractive to UK pensionholders who migrate to the US due to strict Qrops restrictions imposed by the Inland Revenue Service. Currently, the US IRS will only allow foreign pension plans to be transferred to the US that have been approved by the IRS and meet the code requirements. No UK pension plans which are based on UK pension legislation have been approved by the IRS.
Chamberlain says the new product could also benefit pensionholders in countries such as Ireland and Holland which are limited by transfer rules imposed by Mifid. Under Mifid, these countries are only permitted to transfer pensions to other schemes in EU countries. Offshore Pension Services is currently in discussion with a number of UK advisers to assess the viability of the scheme and says it is not aware of any technical and legislative implications which could hinder its approval.
Chamberlain says: “If an individual with Ireland scheme could transfer to a UK scheme, it could then be transferred to New Zealand or wherever the individual resides. This scheme would allow us to transfer both UK and European pensions to anywhere in the world.”