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Boal and Co has been made to de-register its Isle of Man based Trinity QROPS from 4 April. The move is due to Isle of Man tax legal guidelines not transforming in time for the 6 April 2012 change to adhere to new HMRC laws.

Commenting on the conclusion, Gary Boal, managing director of Boal and Co, states he is convinced it is a short-term measure until the Isle of Man alters it tax regime to comply. Existing investors will be untouched.

QROPS Advice

Under the new regulation declared by HMRC, jurisdictions must have a level playing field with regard to the tax treatment of resident and non-resident QROPS traders by 6 April 2012. At this time Isle of Man QROPS are tax exempt for non-residents, but not for residents.

“Of all of our Isle of Man QROPS, only our “50C” schemes suffer from the newest qualification criterion. Whilst Guernsey has adjusted its pensions tax code introducing s157E by 6th April, the government in the Isle of Man has failed so far to do exactly the same.

This leaves us no alternative but to de-register Trinity as a QROPS. We are exceedingly dissatisfied at having to do so,” said Gary Boal.

Boal and Co’s Guernsey scheme “Synergy” will be converting to the new s157E regime on 6th April to ensure it meets HMRC’s new “benefits exemption test” which comes in on that time.

Boal shows that active members of Trinity are wholly unaltered as HMRC alterations are not retrospective. “HMRC’s own FAQs make it generously clear that pre 4/4/2012 transfers are “recognised transfers” if the scheme was a QROPS at the time of transfer,” explains Boals, who also affirms that the firm has also adjusted a new business process to facilitate the provision of Trinity in certain client situations.