ARTICLE · 06 MAY 2016

A Practical Note On How The Proposed Changes To The Pension Tax Laws May Affect You

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On 21 August 2015, the Billet d'État XVI 2015 (the "Billet") published the much-awaited proposals to amend Guernsey pensions legislation in reaction to the new "flexibilities" introduced in April 2015 to the UK pensions regime.

GuernseyEmployment and HR

Nicholas Donnithorne

On 21 August 2015, the Billet d'État XVI 2015 (the "Billet") published the much-awaited proposals to amend Guernsey pensions legislation in reaction to the new "flexibilities" introduced in April 2015 to the UK pensions regime. In this note we have set out more detail on how the changes work and some practical implications.

In a nutshell, the proposals are that:

1. RATS with funds transferred in from overseas pension schemes meeting certain criteria (we refer to these as "relevant overseas schemes")

If separately identifiable, these funds may retain benefit rights of pre-transfer jurisdiction
Lump sums derived from overseas schemes of up to 30% are tax free

Importance to Guernsey trustees: HIGH

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