Malta ready to open new QROPS pension schemes
Malta financial service firms are launching QROPS pension schemes after months of negotiation with HM Revenue and Customs.
The island will open for QROPS business once the Maltese Financial Services Authority has processed applications for retirement schemes under the state’s Special Funds (Regulation) Act to check the arrangements for the scheme meet HMRC rules.
Once the pension scheme has met the qualifying criteria of a QROPS and is recognised by the MFSA, the fund administrators can notify HMRC they meet QROPS rules and then file notification to HMRC for addition to the QROPS provider database.
Malta waits for transfer ‘green light’
When the schemes are added to QROPS database, UK pension funds will have the green light to initiate transfers to Maltese pension schemes.
A MFSA spokesman said: “This is a significant development for Malta indicating the strong reputation of the Maltese financial services industry coupled with the fact that Malta is an English speaking country, had already generated a lot of interest in this area.”
The spokesman added Maltese pension schemes were included in more than 50 of the country’s 50 double taxation agreements and were also recognised in all countries in the European Economic Area (EEA).
HRMC said schemes would be assessed on a case-by-case basis.
Gibraltar awaiting QROPS decision
Meanwhile, Gibraltar is still waiting for a decision from HMRC about status as a QROPS providing country in a disagreement about taxing QROPS benefits for the over 60s.
Gibraltar pension providers voluntarily stopped accepting QROPS transfer earlier this year in a bid to sort out the disagreement without causing tax problems for investors.
A new QROPS database list is due for publication this week, and HMRC is currently deciding whether Gibraltar should be included.
One Gibraltar life and pensions firm is trying to pressurise HMRC in to allowing Gibraltar to remain a QROPS jurisdiction by threatening legal action after taking advice from barristers.
