IVCM (Gibraltar) Retirement Annuity Trust (QROPS)

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The IVCM Gibraltar QROPS is similar to a UK pension scheme although the retirement benefits and tax treatment is slightly different. The IVCM Emirates NBD QROPS only offers an actively managed focused fund range from Emirates NBD to invest in unlike the wide range of assets available through the IVCM Gibraltar QROPS. The scheme is listed on the HMRC ROPS list and can therefore accept transfers from UK registered pension schemes.
This is a defined contribution pension scheme registered in Gibraltar. IVCM (Gibraltar) Trustees Ltd are the trustees of the scheme who are based in Gibraltar and registered and regulated by the Gibraltar Financial Services Commission. Gibraltar is an overseas British Territory and the local currency is Pound Sterling.

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Questions & Answers

A Qualifying Recognised Overseas Pension Scheme (QROPS) is an overseas pension scheme that meets certain requirements set by HM Revenue and Customs (HMRC).

A QROPS can receive the transfer of UK Pension Benefits without incurring an unauthorised payment and scheme sanction charge.

The QROPS program was launched on 6 April 2006 as a part of new legislation with the objective of simplifying pensions.

Much like a Self-Invested Personal Pension (SIPP); QROPS is one of the most flexible pension plans around. It gives the member complete control over how to invest and take benefits while at the same time being very cost effective.

QROPS are intended for use by individuals who intend to permanently leave the UK in order to retire. Many of the benefits of QROPS only apply to those who have completed ten consecutive tax years outside of the UK and who will retire and remain offshore.

 

A SIPP is a UK registered pension scheme whereas a QROPS is an overseas pension scheme which meets certain criteria set out by HMRC.

QROPS can be an extremely useful retirement planning tool for those who completed ten full consecutive tax years outside of the UK and intend to retire and remain offshore. Often a SIPP can offer many of the same benefits but the product is not tailored to overseas members in the same way that QROPS are.

Yes, IVCM offer a wide range of retirement solutions including; QROPS, SIPP, QNUPS and company pension schemes.

You are eligible for the IVCM Gibraltar QROPS regardless of where in the world you live should you wish to transfer benefits from a UK registered pension scheme.

 

However, if you are not resident in an EEA territory on the date your pension is transferred to Gibraltar, the transfer will be subject to the Overseas Transfer Charge (25%).

 

Due to complexity of taxation and the residential jurisdiction of the client, both tax and financial advice are recommended.

People who are not Gibraltar nationals are still eligible for a IVCM Gibraltar QROPS if they wish to transfer benefits from a UK registered pension scheme.

People with small pension pots are still eligible for an IVCM Gibraltar QROPS however we strongly recommend members consider the appropriateness of the QROPS, any potential taxation, associated charges and investment criteria.

No, The IVCM QROPS must be held in a single name.

The IVCM Gibraltar QROPS is not generally suitable for people who do not already have some form of retirement savings either in Gibraltar or the UK.

 

If you do not have any pension provision and are a non-UK resident then you may want to consider another IVCM retirement product means of saving for retirement.

 

From 9 March 2017, certain transfers to and from a QROPS will be liable to a 25% tax charge called the overseas transfer charge.

The charge would apply if none of the following five conditions are met:

  • the member is resident in the same country in which the QROPS receiving the transfer is established
  • the member is resident in a country within the European Economic Area (EEA) and the QROPS is established in a country within the EEA
  • the QROPS is set up by an international organisation for the purpose of providing benefits for or in respect of past service as an employee of the organisation and the member is an employee of that international organisation. PTM112200 provides guidance on the definition of an international organisation. It does NOT simply mean a multi-national employer.
  • the QROPS is an overseas public service pension scheme and the member is an employee of an employer that participates in the scheme
  • the QROPS is an occupational pension scheme and the member is an employee of a sponsoring employee under the scheme

Both the scheme member and scheme administrator will be jointly and severally liable to the charge.

 

Member Responsibilities

If you make a request to transfer your pension funds from a registered pension scheme to a QROPS on or after 9 March 2017, you should check whether the transfer will be subject to the overseas transfer charge

You must be aware that some transfers are not subject to the overseas transfer charge at the time of the transfer, but may become chargeable later date.

Please consult with your Financial Adviser regarding this matter.

If you move to a new country of residence within 5 years of the transfer, meaning none of the above conditions are met, the transfer may then be subject to the overseas transfer charge.

Please consult with your Financial Adviser due to the complexity of taxation and in residential jurisdiction, both tax and financial advice are recommended.

The process of applying for the IVCM Gibraltar QROPS is easy and simply requires that you complete and return the IVCM Gibraltar QROPS application form with the appropriate identification and proof of address.

 

We strongly recommend that any prospective member reads the Terms & Conditions, Key Features Document and Schedule of Fees and Charges before completing the application.

Yes, IVCM only accept applications from individuals who are introduced to us by an appropriately licensed financial professional.

If you do not have a financial adviser then you can search for one using www.unbiased.co.uk to locate an adviser in the UK. If an overseas adviser is required, please contact us and we can assist in finding an appropriately licenced adviser.

 

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Member contributions to the IVCM Gibraltar QROPS are not normally permitted but will be considered on a case by case basis.

Please contact our technical team for more information.

No, you are not entitled to tax relief on contributions made to the IVCM Gibraltar QROPS.

Yes, in most cases, however we strongly recommend you seek financial advice. Transferring a pension scheme is a major financial decision and we strongly recommend that careful consideration is given to the appropriateness of the QROPS, any potential taxation and associated charges.

Yes, in most cases, however we strongly recommend you seek financial advice. Transferring a pension scheme is a major financial decision and we strongly recommend that careful consideration is given to the appropriateness of the QROPS, any potential taxation and associated charges.

 

You should be aware that not all overseas pension schemes permit transfers to other pension schemes.


Please contact our technical team for more information.

The IVCM Gibraltar QROPS is a highly portable pension scheme and is recognised in many other countries as such for tax purposes.

 

Wherever member circumstances change, we strongly recommend reviewing the appropriateness of the QROPS, any potential taxation and associated charges.

 

Any change in relation to your personal circumstances and country of residence you are required to update IVCM Trustees Limited immediately in writing.

IVCM Trustees (Gibraltar) Ltd
215B Neptune House
Marina Bay
Gibraltar

Tel: +350 200 69290
Fax: +350 200 69284
Email: gib@ivcm.com

Yes, provided that the receiving scheme meets the relevant requirements and completes a due diligence process.

Transfer out to IVCM QROPS: NIL
Transfer out to IVCM SIPP: NIL
Transfer out to another SIPP Provider: £200
3rd Party Due Diligence on another QROPS: £500
In-Specie Transfer Out (in addition to the above): £500

Please refer to our application for the list of available funds when investing into the sub funds of Emirates NBD SICAV

No, you can hold all or part of your funds in your default Brown Shipley Private Bank QROPS Account until you are ready to invest them. Please check with your financial adviser for the rate of interest currently available.

No.

 

The IVCM Gibraltar QROPS is a member directed pension scheme and therefore all investment decisions are the responsibility of the member and their financial adviser. Neither IVCM nor any of its affiliates give advice relating to the suitability of investments and cannot be held liable for any losses as a result of investments held within the IVCM Gibraltar QROPS.

Yes. A QROPS gives you the flexibility to choose and change your investments when you want but you can only select from the sub funds of Emirates NBD SICAV.

Yes, the default bank account with your IVCM Gibraltar QROPS is held with Brown Shipley Private Bank and there are no charges for holding cash.

Retirement is the act of taking benefits, pension commencement lump sum or income, from your QROPS. This can be done at any time after your 55th birthday.

 

Members of the IVCM Gibraltar QROPS are never obligated to take benefits at a specified age and benefits can be taking before you stop working.

No. Once invested in a pension you cannot withdraw those funds until the minimum retirement age.

Yes, you will normally be able to take a pension commencement lump sum (PCLS) from the IVCM Gibraltar QROPS.

If you have completed 10 consecutive tax years offshore and are non-UK resident at the time of taking benefits then you will normally be able to take up to 30% of the fund value as a pension commencement lump sum.

 

If you have not completed 10 consecutive tax years offshore or you are UK resident at the time of taking benefits then your PCLS will be restricted to 25% of the fund which was transferred to the IVCM Gibraltar QROPS.

The rules of the IVCM Gibraltar QROPS state that 70% of the fund which was transferred to the IVCM Gibraltar QROPS must be used to provide you with an income for life.

 

A pension can be taken via Income drawdown and this allows the pension pot of the retired member to remain invested while they take an income directly from the fund.

 

The trustees of the IVCM Gibraltar QROPS will ensure that income is set at a level which will provide you with an income for life.

All income paid from the IVCM Gibraltar QROPS will be taxed at a rate of 2.5% at source.

 

You may be subject to tax in your country of residence and it is the responsibility of every member of the IVCM Gibraltar QROPS who is receiving income to seek professional tax advice as to whether there is a further liability.

No, you can take your pension fund in stages, rather than securing your retirement income all at once. This is known as ‘phased retirement’.

Yes, you may request an illustration of benefits at any time but there may be an additional charge for this.


Please refer to the IVCM Gibraltar QROPS Schedule of Fees and Charges

An annuity is a type of insurance policy that provides a regular income for life.

 

IVCM do not offer an annuity but you may use your QROPS funds to purchase an annuity at from a third party insurance company any time after the minimum retirement age.
Please contact our technical team for more information.

If you die before taking benefits from your IVCM Gibraltar QROPS then your entire fund will normally be paid to a beneficiary as a tax free lump sum however, if you have a spouse, civil partner or dependent child then they also have the option of using the entire fund to provide a dependent’s pension.

 

When you open an IVCM Gibraltar QROPS, we ask you to complete section 6 Nominated Beneficiaries which allows you to nominate who you would like us to pay your QROPS to when you die.

 

Please note it is extremely important to keep the Nominated Beneficiaries up to date on your file, to help to pay the death benefits to your chosen beneficiaries.

If you die after taking benefits from your IVCM Gibraltar QROPS then your entire fund will normally be paid to a beneficiary as a tax free lump sum however, if you have a spouse, civil partner or dependent child then they also have the option of using the entire fund to provide a dependent’s pension.

 

When you open an IVCM Gibraltar QROPS, we ask you to complete a Nomination of Benefits form which allows you to nominate who you would like us to pay your QROPS to when you die.

As the IVCM Gibraltar QROPS is written under discretionary trust, any lump sum paid on death is normally paid at the Trustee’s discretion and hence falls outside of the member’s estate for inheritance tax purposes.

You can name anyone you wish as a beneficiary of your pension scheme including; family members, friends or registered charities. However we must hold a record of this as should there be no recorded beneficiaries, (i.e. legally deemed “intestate”) benefits may not be paid in accordance with your wishes.

Members should ensure that the QROPS Administrator is provided with a Nomination of Beneficiaries form whereby the member nominates their preferred recipients for the Trustees to consider.

You can update your beneficiary details as often as you wish by sending us an original Nomination of Beneficiaries form.

Please note: the most recently received nomination of beneficiaries form will be deemed to be the only valid expression of wish. Any others pre-dating that will not be considered valid.

 

IVCM Trustees (Gibraltar) Ltd is a Professional Trustee licensed by the Financial Services Commission (FSC) in Gibraltar.

The IVCM Gibraltar QROPS is established under master trust.

 

IVCM Trustees (Gibraltar) Limited contracts are subject to the laws of Gibraltar and any resulting legal disputes will be subject to the exclusive jurisdiction of the Gibraltar courts.

 

Brown Shipley Private is a member of the Financial Services Compensation Scheme (FSCS).

The FSCS can pay compensation to depositors if a bank is unable to meet its financial obligations. Most depositors – including most individuals and small businesses – are covered by the scheme.

 

An eligible depositor since 1 January 2016 is entitled to claim up to £ 75,000. For joint accounts each account holder is treated as heaving a claim in respect of their share, so two eligible depositors with a joint account could claim up to a maximum of £75,000 each (making a total of £150,000). The £75,000 limit relates to the combined amount in all the eligible depositor’s accounts with the bank, including their share of any joint account, and not to each separate account.

The IVCM Gibraltar QROPS is a member directed pension scheme and therefore all investment decisions are the responsibility of the member and their financial adviser. Neither IVCM nor any of its affiliates give advice relating to the suitability of investments and cannot be held liable for any losses as a result of investments held within the IVCM Gibraltar QROPS.

Members of the IVCM Gibraltar QROPS receive annual statements which are issued via a financial adviser.

Yes, you may request an illustration of benefits at any time but there may be an additional charge for this.


Please refer to the IVCM Gibraltar QROPS Schedule of Fees and Charges

 

If you have further questions then please contact us.

In the unlikely event that you should wish to register a complaint in relation to your plan, then such complaints should be made in writing to:

IVCM Trustees (Gibraltar) Limited
215B Neptune House
Marina Bay
Gibraltar

If in the event that we are unable to resolve your complaint you have the right to refer the matter to the Financial Services Commission (FSC).

Where a person is unhappy with the services provided by a regulated firm; he or she should instigate the formal complaints procedure of that firm. The FSC has no statutory powers to undertake the role of an ombudsman in respect of complaints nor act as arbitrator in commercial disputes. If a complainant remains dissatisfied and believes that they have a case for being compensated financially, this must be pursued through the Gibraltar courts. Anyone contemplating such action should always consider taking professional advice at an early stage.

Whilst the FSC does not conduct investigations on individual complaints, it is useful, however, for the FSC to be made aware of complaints against firms it supervises. The FSC’s role is to ensure that a regulated firm is being managed prudently in a fit and proper manner: any interest which it takes in a complaint will therefore normally be confined to ensuring that this criterion is being met. A complaint might draw attention to more general shortcomings in a business such as inadequacy of systems and lack of expertise in its managers or directors. Should the FSC decide to take action against a firm, such action will not usually be made public, and the confidentiality provisions under the relevant Acts within which the FSC operates may preclude the FSC from making any public statement. Indeed, the FSC is not able to tell individual complainants of the nature and scale of its enquiries, or of the action it may, or may not, have taken.

Those considering lodging complaints with the FSC should always bear in mind the above limitations, but should not be deterred from informing the FSC of their concerns. It is important that any information provided by complainants is both accurate and complete.

The FSC welcomes any views and comments that may assist it in satisfying its supervisory responsibilities. In addition, it is grateful for any information about people or firms who appear to be carrying on financial services business in, or from within, Gibraltar without the necessary authorisation.

The Department of Consumer Affairs of the Government of Gibraltar (conaffairs@gibtelecom.net) is able to provide assistance to individuals who wish to complain about services or goods provided by any firm in Gibraltar.