Domestic Pensions

Domestic Pensions

Domestic Pensions

Domestic Personal/Corporate Pensions

DPP/DCP

Where an individual has a personal or occupational pension scheme in the United Kingdom and intends to emigrate from the UK to the Isle of Man. We create set-up and administer local schemes for Isle of Man based businesses and individuals.

The key characteristics EPL's Domestic Pensions, 1989 schemes are:

Be a Trustee of your own scheme
Ability to transfer existing UK pensions which may have been accrued over the years into One scheme, over which Member has control
Scheme assets may be passed on to heirs and Successors, less 0% or 7.5% tax dependent on circumstances
Tax relief given on contributions – permits a degree of flexibility over quantum of tax payable at tax year end. Maximum £50,000 annual contribution allowance (or 100% of NRE)
Tax free lump sum of 30%, with deferral of pension payment
Member may take pension and continue to work
Good value to set-up and administer
Transparent charging structure
Assets grow free of tax
Special transfers permitted
Related Party Transactions permitted
“Open Architecture” investment options; e.g. Property, Financial Investments. Freedom of investment choice by the Member (unlike insured alternatives)
Residential property (subject to limit of 50% of fund) as permitted investment
No compulsory Annuity purchase required
Allow concurrency (more than one pension allowed)

How much should I save?


Depending on which scheme you choose the contribution limit can be up to £50,000 per annum

The basic advice with pensions is to put in is as much as possible, as early as possible. There's a very rough rule of thumb for what to contribute for a comfortable retirement...

Someone starting aged 32 should contribute 16% of their salary for the rest of their working life. While 16% of your pay may seem vast, the figure includes your employer's contribution.


Take the age you start your pension and halve it. Then put this % of your pre-tax salary into your pension each year until you retire.
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01624 675955

What are the charges?


Located in the Isle of Man allows us to pass on a low fee low margin structure to you.

If you are a member of a defined contribution pension scheme, you’re likely to pay some charges. These fees cover scheme administration and investing your contributions to build up your retirement pot.

Please ask us for further details. The SIPPSOnline Pension is designed with no minimum fee and is therefore targetted at those smaller schemes.

Need some further advice, call us on

01624 675955

When can I start taking my pension?


Most pensions set an age when you can start taking money from them. This is not normally before 55.

You don't have to commence drawdown after taking a tax free lump sum untill your 75th birthday. You’ll then have 6 months to start taking the remaining 75%, which you’ll usually pay tax on.

Need to know if you can move when you can start drawing your pension? Call us on

01624 675955

Examples of Cases:

Case 1.


International Pensions


An Isle of Man resident remembers a legacy UK based pension that he/she left behind over 10 years ago when they left the UK. They are aged over 55 and really could do with a tax free lump sum.

If they leave the pension in the UK they are permitted only a 25% tax free lump sum – worse is to follow as Isle of Man Treasury will then tax it at marginal rates as there is no income tax to offset against the DTA on monies received. This is because there is no HMRC QROPS reciprocal arrangement accepted by IOM Treasury for UK pensions

So they need to move it to the Isle of Man DPP pronto – and thereby collect 30% tax free lump sum

Get a proper Domestic Personal Pension. Call us on

01624 675955

Case 2.


International Pensions


A large E Gaming Company relocates to the Isle of Man from Malta ever fearful of the poor reputation for regulation there and wishes to set up a “workplace” scheme for employees based in Isle of Man. The DCP would seem to meet all their needs for a flexible well balanced pension structure.

Let's start planning your pension. Call us on

01624 675955

Case 3.


International Pensions


UK resident beneficiaries of their father’s IOM pension require a QNUPS - a Qualifying Non UK Pension scheme to provide an Isle of Man based pension with IHT and CGT mitigation as well as zero IOM tax upon drawdown.

Let's start planning your pension. Call us on

01624 675955

SIPPSOnline

The SIPPSOnline pension product was launched by Equilibrium Pensions following the acquisition of SIPPSOnline by Equilibrium Pensions in the summer of 2017.

The SIPPSOnline pension is designed to be a low cost simple offering that appeals to those with small savings and lower costs.

SIPPSOnline is approved under the 1989 Income Tax Act and the main characteristics are:

Ability to transfer existing UK pensions which may have been accrued over the years into One scheme, over which Member has control
Scheme assets may be passed on to heirs and Successors, less 0% or 7.5% tax dependent on circumstances
Tax relief given on contributions – permits a degree of flexibility over quantum of tax payable at tax year end. Maximum £50,000 annual contribution allowance (or 100% of NRE)
Tax free lump sum of 30%, with deferral of pension payment
Member may take pension and continue to work
Good value to set-up and administer
Value offering for smaller schemes
Transparent charging structure
Assets grow free of tax
Special transfers permitted
No compulsory Annuity purchase required
Allow concurrency (more than one pension allowed)

EPL AGILITY 61H

The Isle of Man has produced a "pension freedom scheme" type arrangement that is similar to UK pension freedom legislation - Equilibrium Pensions is pleased to provide the "Agility 61H" pension encompassing the new Isle of Man Pension "Freedoms" under Section 61H of the 1970 Income Tax Act.

The Agility 61H provides flexible access on drawdown post age 55, as well as 40% tax free lump sum. May be suitable for those Isle of Man residents who are currently making contributions out of Isle of Man tax relieved funds.

However, the Agility 61H is unlikely to satisfy HMRC to register as a QROPS, and any Isle of Man 1989 pension transfer is subject to a 10% income tax charge thus making such transfers far less attractive to savers with existing schemes.

Scheme assets may be passed on to heirs and Successors, with Zero tax on transfer
Post Age 55 complete freedom in withdrawals (subject to marginal rates of tax)
Tax relief given on contributions – permits a degree of flexibility over quantum of tax payable at tax year end. Maximum £50,000 annual contribution allowance (or 100% of NRE)
Tax free lump sum of 40%, with deferral of pension payment
Member may take pension and continue to work
Good value to set-up and administer
Transparent charging structure
Assets grow free of tax
Special transfers permitted
Related Party Transactions permitted
"Open Architecture" investment options. Freedom of investment choice by the Member (unlike insured alternatives
No compulsory Annuity purchase required
Allow concurrency (more than one pension allowed)
Existing schemes may be transferred less 10% fee to Treasury
Not HMRC QROPS

What happens with my money?


You get lots of choice and flexibility over the way your retirement savings are invested from property to money markets.

Property
Financial Investments
Find out how your money's working for you.

01624 675955

Keep an eye on things


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Need some further advice, call us on

01624 675955

What are the tax benefits?


The Isle of Man has produced a "pension freedom" arrangement under Section 61H of 1970 Income Tax Act.

Need further info on our tax benefits?

01624 675955