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The Reciprocal Agreement with the UK for the Transfer of Pension Rights 24 February 2006 From 6th April 2006, when the simplified pension scheme tax regime is introduced in the UK, pension rights transfers from the UK to the Isle of Man will no longer be subject to HM Revenue and Customs (HMRC) discretion and individuals will not have to meet any HMRC conditions as is the case under the current tax rules and the reciprocal agreement. HM Revenue and Customs believe that the new rules will make it easier to make transfers than the existing bilateral arrangements. As a result the existing reciprocal agreement between HMRC and the Assessor for the transfer of pension rights with the Isle of Man will become redundant and will be terminated with effect from 5th April 2006. This position will similarly apply to HMRC’s reciprocal transfer arrangements with the Republic of Ireland, Jersey and Guernsey from that date. The ability of an Isle of Man resident moving to the UK on changing their job after 5th April 2006 to transfer their pension back to the UK will remain but will be under the new regime. Guidance on the new UK overseas transfer rules is provided in Part 14 of the Registered Pension Schemes Manual which is available on the HMRC internet site. This guidance will be amended by HMRC to take account of some recent changes to draft regulations. The revised draft of “The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2005” is also available on the HMRC internet site. M Couch Assessor of Income Tax 24th February 2006 More stories >>>
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