Section 150 Occupational Pension Schemes Tax Changes

The States of Guernsey have resolved to amend the Income Tax (Guernsey) Law, 1975 to ensure the taxation of pension benefits paid from occupational pension schemes approved under section 150 of the law, irrespective of where the services in respect of which those benefits were paid were performed. The change follows proposals put forward by Guernsey's Treasury and Resources Department.

Under the current law any pension benefits paid from a section 150 scheme are only treated as income arising or accruing from a source in Guernsey if the services in respect of which the pension or annuity is payable were performed in Guernsey. If the services were performed wholly outside Guernsey, that pension or annuity would not be deemed Guernsey source income and would not attract a charge to Guernsey tax.