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This will be of interest to clients with UK Pension Schemes that are considering transferring them out of the UK. Bearing in mind the implications of the Inland Revenue Green Paper, they would be very wise to transfer out before the end of this year or at the very latest, the start of next year. Under the Green Paper it is proposed that anyone with a fund in excess of £1.4m will be taxed on an annual basis, on the growth in excess of this figure at the rate of 40%. This is concerning a lot of individuals so where possible they are looking for alternative jurisdictions.
If clients just wish to get their scheme away from the above tax situation and also be in a position not to have to purchase an annuity, then the Isle of Man is the best jurisdiction for them.
There is also the option of using Qualifying (Category 2) Individuals Rules 1999 in Gibraltar where the pension can be drawn without incurring any additional tax other than the ceiling of £19,750. There are some long term implications in taking this route if the member ever decides to give up Category 2.
Until ECS know exactly what your clients are trying to achieve and their taxable position as regards the UK, it is difficult to say which jurisdiction would be most suited for them.
There are very strict rules on transfers set down by the UK Inland Revenue so any application to transfer out of the UK will have to comply with these rules.
In all cases the client will have to leave the UK, give up all employment there, including Directorships.
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.
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The recent developments in the shores of Cyprus have attracted the attention of foreign governments, leading energy companies and naturally the attention of international media.
It is significant that during his recent visit to Antigua, Mr. Augustin Carstens, Deputy Director, International Monetary Fund stressed, "Clearing longstanding arrears would go a long way toward normalising - and facilitating access to - regular financing. This will also help private investment and spur growth".
International Collective Investments Schemes in Cyprus are governed by the International Collective Investment Schemes Law (Law 47(I) of 1999 as subsequently amended, the "Law").
The Mauritius Legislature has modernised the legal framework
that governs the non-banking financial services sector on the
island by introducing three new pieces of legislation, and
repealing five pieces of legislation that had become
outdated.
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