UK Pensions Update

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.