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About the Author: Kate Ivy is a professional writer and web designer who specializes in content for marketing, advertorial and B2B ventures. You can learn more about SEO and successful web marketing at Ivygirl Media & Design ( ). The review is believed to be holding up several Isle of Man QROPS registrations while tax experts work their way through a request for clarification about the scheme.
The Isle of Man government upgraded pension rules in October to let financial firms on the island compete with QROPS providers on Guernsey.
The 50c rule refers to a specific section of IoM pension law that allows pension providers to pay out tax free benefits at a higher rate on fund growth than on the total fund value transferred from a UK pension.
The point in question is whether the 70% fund that a QROPS must retain to pay pension benefits is calculated at the time of transfer or when benefits are drawn.
If on transfer, then the 50c scheme would seem to fall within the rules – if not cheap jordan shoes from china , then paying additional benefits could result in an unauthorised withdrawal that triggers a tax penalty for the pension investor.
Only one 50c scheme is currently on the HMRC QROPS list.
Doubt was thrown in to the process by a rival IoM QROPS provider writing to HMRC asking for clarification about how QROPS rules were applied to a 50c scheme.
Since then, the 50c QROPS scheme was removed from the QROPS list for a short time – with the provider explaining this was an HMRC clerical error involving compilation of the list.
Meanwhile, HMRC has refused to comment about leaving the QROPS off the list cheap jordan shoes mens , the scheme’s reinstatement or any other aspect of the 50c inquiry.
In line with HMRC, Isle of Man QROPS Providers and the government are also declining to offer any comment on the review.
Qrops providers in Gibraltar have had their schemes held in a pipeline since mid-2009 in a dispute over technical terms relating to tax on pension benefits.
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