Double Taxation For Isle Of Man QROPS
Posted on 06. May, 2008 by mike in QROPS
We have discovered that investors who take out an Isle of Man-based QROPS with a view to reducing inheritance tax by up to 70% on death may have to pay two lots of income tax on their pension withdrawals.
Under current legislation, scheme members could be subject to an 18% tax charge on withdrawals, in addition to paying income tax in their host country.
All of which makes us wonder why anyone would consider an IOM QROPS in the first place?
Firms marketing IOM QROPS are hoping the Isle of Man treasury will lower its tax charge for scheme members who are already paying pension income tax in their host country as The Island has applied this principal for its own ex-pats.
Frankly we don’t think “hope” is a good basis for planning!
Further information on our QROPS Services.
