Horizon QROPS Gibraltar (HIPP Equus / HGIB)
Payment of Benefits
By transferring to a HIPP Equus / HGIB QROPS, the member would receive lump sum benefit payments gross*, with future benefit payments net of Gibraltar tax (currently 2.5%*) deducted at source. The member will then be responsible for the declaration of income in their current country of residence (the Trustee’s of the HIPP Equus/ HGIB QROPS recommend that you obtain tax advice within your country of residence).
As a member, you may nominate when you commence taking your pension benefits, between ages 55 and 75 years of age (in line with the deed rules and the undertakings by the Trustee with HMRC).
Benefit may be by way of a lump sum and/or by regular drawdown. Castle Trust & Management Services Limited (CTMSL) as Trustee has undertaken with HMRC to retain at least 70% of any UK recognised transfer to provide an income for life.
The Trustees of the HIPP Equus / HGIB QROPS have undertaken to provide information to HMRC on all payments or deemed payments made from the plan relating to a member when any one or more of the following statements applies:
- The member is tax resident in the UK when the payment is made – or treated as made
- Although not a tax resident in the UK, the member has been a resident in the UK earlier in the tax year in which the payment is made (or treated as made) or in any of the five tax years immediately proceeding that tax year.
- Within 10 years of the UK registered pension transfer to the HIPP Equus/ HGIB QROPS
- In a manner in which the Trustee ensures that QROPS status is maintained.
Reporting to Gibraltar Tax Authority will be as required for Gibraltar residents and non‑Gibraltar Residents in line with the scheme approval and as directed / agreed with the Gibraltar Tax Authority.
Benefit Payments are able to be drawn via either:
- A lump sum payment of a percentage of the value of the Member’s Fund or ad‑hoc lump sum payments are available from the retirement benefit date (or as the law as amended, governing the deed may permit);
Regular benefit payments via either
- Drawdown directly from the retirement fund in accordance with the set parameters** (See note 1);
- Purchase of an annuity contract through an insurance company;
- Combination of the above.
Drawdown/Annuity quotations will typically utilise one of the following sources for calculations (See note 1):
- UK Government Actuary’s Department (“GAD”) Tables;
- Annuity Tables on the UK Financial Services Authority (“FSA”) website;
- Recognised insurance company quotation;
- Alternative Government actuary tables according to currency and/or residency of Member as may be applicable;
- Actuary Quotation (Cost of obtaining an actuary quotation will be borne by the Member’s Fund).
*Figures and statements correct on publication, though are subject to change. All benefit payments are subject to rules/parameters as set out by the Gibraltar Tax Authority and HMRC.
Note 1 Important Notice: As the HIPP Equus / HGIB QROPS is a Retirement Annuity Trust Scheme (RATS), please note that, the lifespan of a member of a RATS, and the investment performance of the assets held in a RATS, are impossible to predict. As a result, once a member has started to draw down benefits from the RATS and depending on the level of benefits paid, the assets may be exhausted before the death of the member.