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Boal and Co has been forced to de-register its Isle of Man based Trinity QROPS from 4 April. The move is due to Isle of Man tax legislation not adjusting in time for the 6 April 2012 changeover to comply with new HMRC laws.

Commenting on the choice, Gary Boal, managing director of Boal and Co, claims he is convinced it is a short term measure until the Isle of Man alters it tax regime to comply. Existing investors will be not affected.

QROPS Advice

Under the new guidelines announced by HMRC, jurisdictions must operate a level playing field with regard to the taxes treatment of citizen and non-resident QROPS traders by 6 April 2012. Currently 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” plans suffer from the newest eligibility criterion. Whilst Guernsey has used 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 changing to the new s157E regime on 6th April to make certain it meets HMRC’s new “benefits exemption test” which will come in on that date.

Boal indicates that existing members of Trinity are completely untouched as HMRC adjustments are not retrospective. “HMRC’s own FAQs make it abundantly very 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 availability of Trinity in certain client conditions.