IVCM (Gibraltar) Retirement Annuity Trust

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IVCM Gibraltar QROPS is a secure retirement product on HMRC ROPS list. It allows investment into a wide range of assets and has a simple taxation structure. As the scheme is listed on the HMRC ROPS list it can 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.

Under Gibraltar rules for QROPS, the maximum lump sum benefit payable cannot exceed 30% of the value of the member’s unvested pension and is not subject to tax in Gibraltar. Pension income payable to scheme members is intended to be payable throughout their life. The maximum regular pension payable to a member shall normally be based on the United Kingdom GAD drawdown pension tables. The amount of the maximum regular pension shall be recalculated every three years following the Pension Commencement Date, and yearly once the member reaches age 75. Any pension payments made shall be subject to Gibraltar Income Tax at the rate of 2.5%, which shall be deducted at source at the time of payment by the trustee and administrator. Gibraltar does not have any double taxation agreements in place.

IVCM GIBRALTAR RETIREMENT ANNUITY TRUST (QROPS)

BENEFITS & REQUIREMENTS

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.

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

QROPS are generally intended for use by individuals who intend to permanently leave the UK. Many of the benefits of QROPS only apply to those who have completed five consecutive tax years outside of the UK and who will retire and remain offshore. However, QROPS can still be used for members who are resident in the UK and do not intend or work or retire abroad.

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

QROPS can be an extremely useful retirement planning tool for those who completed five 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 in Gibraltar, Australia and New Zealand, SIPP, QNUPS and company pension schemes. By company pension schemes, do we mean ‘SSAS’s? If so, we should just say SSASs and not company pension schemes as this can be mis-leading and can just be removed.

You are eligible for the IVCM Gibraltar QROPS regardless of where in the world you reside 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. There are circumstances when the 25% overseas payment charge may be reclaimed

People who are not Gibraltarian nationals are still eligible for a IVCM Gibraltar QROPS if they wish to transfer benefits from a UK registered pension scheme or an existing QROPS 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. Please contact us in advance for further discussion in relation to small pension pots

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

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 payment 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 (Gibraltar is in 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. 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 at a 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, 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 and New Business Checklist 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.

Member contributions to the IVCM Gibraltar QROPS are not normally permitted but can 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 suitability 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 suitability 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 by completing and returning our Change of Details form

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 passes our acceptability checks.

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

Permitted Investments classified as Standard Investments

• Stock and Shares listed on any recognised Stock Exchange including company shares
• Fixed Interest Securities, Loan Notes & UK Government Treasury Bills
• Depositary Interests (including CREST depositary interests)
• Investment Trust shares & ETFs listed on any recognised Stock Exchange
• Collective Investment Schemes authorised by the FCA
• Collective Investment Schemes constituted in an EEA member state and authorised by the appropriate authority and is an FCA recognised scheme under Section 264 of FSMA 2000
• Bank Deposit Accounts within the EEA
• Structured Deposits protected by the FSCS or equivalent EEA compensation scheme
• Structured Capital Protected Products where there is more than one counterparty GIBRALTAR

There is no percentage holding restriction in relation to Standard Investments however, they remain subject to the general diversification provision noted below.

Permitted Investments classified as Non-Standard Investments

• Unregulated Collective Investment Schemes or Qualifying/Sophisticated Investor Funds
• Collective Investment Schemes which are only intended for ‘Well-Informed’, ‘Experienced’, ‘Sophisticated’, or ‘Professional’ investors. Specialised Investor Funds are also not available to retail clients.
• Property Development Schemes where the legal documents are pre-prepared by a promoter (i.e. storage units, car parks, land schemes, hotel developments etc.)
• Structured Capital Protected Products/Notes where there is one counterparty • Structured Capital at Risk Products/Notes • 3rd Party loan notes
• Unregulated Special Purpose Vehicles where the underlying assets are illiquid
• Unregulated Genuinely Diverse Commercial Vehicles
• Unlisted shares (Brooklands Pensions does not permit unlisted share purchases from connected parties)

Investments classified as Non-Standard Investments are only available to Professional Clients as defined in our Professional Client Declaration.

No, you can hold all or part of your funds in your default QROPS bank 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.

Yes, the default bank account with your IVCM Gibraltar QROPS permits this 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 on or 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 of 55.
Yes, you will normally be able to take a pension commencement lump sum (PCLS) from the IVCM Gibraltar QROPS, provided that you have not already taken PCLS from your former pension scheme.
If you have completed 5 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 5 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 value.
The rules of the IVCM Gibraltar QROPS state that 70%/75% (dependant on PCLS entitlement) of the residual fund value after deduction of the PCLS must be used to provide a capped drawdown income. This is based on the value of the fund as the point the member decides to draw benefits from the fund.

A pension can be taken via capped 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 level that is fixed for three years.

The maximum permitted income a member can draw from their fund is reviewed every three years (triennial review). The new maximum permitted income will be largely dependent on the fund value at the time and the performance of the underlying investments. The new income level may increase or decrease (sometimes significantly) at each triennial review.

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/phased drawdown’.

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 establish an IVCM Gibraltar QROPS, we ask you to complete the Nomination of Beneficiary section in our application form, which allows you to nominate who you would like us to pay your QROPS to when you die.

This can be changed at any future date of your choosing. Please contact us to provide you with our required forms. (change of details form)

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. IVCM can pay the death benefits without deduction of any tax, however the beneficiaries will be liable for any tax due dependant on the tax rules in the jurisdiction where they are resident.

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. Where possible, please provide contact details for your nominated beneficiaries, including address, telephone number and email.

Members should ensure that they complete the Nomination of Beneficiaries section in our application form upon the initial establishment of the QROPS. The member can change their nominated beneficiary at any time by completing our Change of Details form.

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.

No, you do not need to provide us with a copy of your Will, nor does the nominated beneficiaries of your QROPS have to match those in your Will.

The Trustees do not usually require a copy of the Will upon death of the member, however they may request a copy for advisory purposes and guidance, should there be dispute in relation to the nominated beneficiaries

No, The trustees will only pay out death benefits to the named beneficiaries. A Will does not over-ride or supercede this. It is preferable that a members nominated beneficiaries are named when the QROPS is established, although there is no formal requirement to do this. The member can amend and change the nominated beneficiaries at any point and frequency of their choosing.

Please check our Documentation Section before making an application.

IVCM Trustees (Gibraltar) Ltd is licensed by the Gibraltar Financial Services Commission (GFSC) as a Class VII Professional Trustee. for the provision of trusteeships to pension schemes.

The IVCM Gibraltar QROPS is established under discretionary 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.

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 either directly to the member by email or via their financial adviser. Hard copies can be posted upon request.

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 Gibraltar Financial Services Commission (GFSC) by writing to:

Gibraltar Financial Services Commission

PO Box 940
Suite 3, Ground Floor
Atlantic Suites
Europort Avenue
Gibraltar