QROPS Advice for Guernsey and the Isle of Man

Not only can you choose how and when to get hold of your money, but you can also choose the jurisdiction that your pension will be regulated and taxed in.


This is a fact that is not lost on QROPS investors who have chosen Guernsey and the Isle of Man for their QROPS destinations. These are the two financial centres that lead the way in terms of QROPS numbers. This is a complicated issue, even for those in the know, so I recommend you get in touch with an advisor who can explain QROPS simple advice in plain English.

Guernsey is an attractive place to put your pension because its investment controls are favourable, and because it is tax neutral. That is to say that the pension distributions are not taxed locally but are typically paid gross to non-resident investors whose own country of residence deals with tax at the appropriate rate. The Isle of Man on the other hand taxes these payments at 18%. However, depending on the investor’s country of residence, they may be entitled to a rebate or tax credit.


From the point of view of the Isle of Man, the attraction may be that investors can access 30% of their pension assets as a lump sum. This compares with Guernsey favourably, because that jurisdiction only permits investors to get their hands on 25%.


It is rumoured that both islands are considering amendments to their tax regimes, which may be set to become more competitive. Both islands benefit from the United Kingdom’s protection so may be perceived as safe and stable politically, but are free to pursue their own fiscal policies, which means that their tax policies tend to be very favourable to investors.


The islands bother benefit from mature investment communities, which are mostly English speaking and well stocked with financial professionals. Taking all of this into account, it is clear why, between them, the two countries top the QROPS tables.