The smart money is on the Isle of Man's 50c QROPS pension rules picking up a clean health record from an investigation by HM Revenue and Customs.
The pension rules were a victim of a 'dirty war ' of words between rival QROPS pension advisors and suppliers in the IoM and Guernsey as both seek to gain the top spot in the offshore pensions market.
The battle has swung to and fro over one or two months since the IoM upped stakes by reinterpreting HMRC QROPS legislation with 50c rules that allow retirement savers draw down more than the standard 30% tax-free one-off sum.
QROPS with better tax-free benefits
The island's QROPS providers argued the rules stated backers were only entitled to 70% of the value of their transfer fund in to a QROPS, but could take a larger piece of any accrued gains from their investments.
One QROPS expert wrote to HMRC protesting the 50c interpretation broke the rules, causing an investigation.
Though an official announcement is awaited, HMRC are said to be close to finalising their inquiries and are unlikely to rule against the IoM interpretation.
In the meantime, Guernsey has introduced a QROPS code of practice from offshore pension suppliers in an effort to promote ethical and secure investment on the island.
QROPS providers and the Guernsey pensions administration are also thinking about upgrading their rules in accordance with the IoM's 50c products.
Finding the best QROPS
The jockeying for position by both offshore financial centres highlights just how important ex pat pension business is to their economies.
The real question is which is better - the Isle of Man or Guernsey?
With no regard for the spin both put on the relative merits of investing with them, the best product is set by the clients''s investment and retirement goals rather than selling.
Best information for anyone setting up a QROPS is to go to an adviser who has a range of products from both jurisdictions to get the best of both worlds.
The pension rules were a victim of a 'dirty war ' of words between rival QROPS pension advisors and suppliers in the IoM and Guernsey as both seek to gain the top spot in the offshore pensions market.
The battle has swung to and fro over one or two months since the IoM upped stakes by reinterpreting HMRC QROPS legislation with 50c rules that allow retirement savers draw down more than the standard 30% tax-free one-off sum.
QROPS with better tax-free benefits
The island's QROPS providers argued the rules stated backers were only entitled to 70% of the value of their transfer fund in to a QROPS, but could take a larger piece of any accrued gains from their investments.
One QROPS expert wrote to HMRC protesting the 50c interpretation broke the rules, causing an investigation.
Though an official announcement is awaited, HMRC are said to be close to finalising their inquiries and are unlikely to rule against the IoM interpretation.
In the meantime, Guernsey has introduced a QROPS code of practice from offshore pension suppliers in an effort to promote ethical and secure investment on the island.
QROPS providers and the Guernsey pensions administration are also thinking about upgrading their rules in accordance with the IoM's 50c products.
Finding the best QROPS
The jockeying for position by both offshore financial centres highlights just how important ex pat pension business is to their economies.
The real question is which is better - the Isle of Man or Guernsey?
With no regard for the spin both put on the relative merits of investing with them, the best product is set by the clients''s investment and retirement goals rather than selling.
Best information for anyone setting up a QROPS is to go to an adviser who has a range of products from both jurisdictions to get the best of both worlds.
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