What is a RATS?
RATS – A Retirement Annuity Trust Scheme. This is a pension which is established in Guernsey by way of a trust structure and adheres to parameters as set out by the Income Tax Authority relating to pensions and their treatment.
Key sections of the Guernsey Income Tax Law are often referenced to and will normally relate to the schemes approval or exemptions which may be applicable. These sections are 157A; 157E and 150 of the Guernsey Income Tax Law, as amended with regard to approvals, with exemptions referred to under Section 40ee.
RATS have become one of the principal mechanisms for making tax efficient pension provisions in Guernsey.
The attraction of a RATS also extends beyond just Guernsey. This has been highlighted in recent years by Guernsey being acknowledged as the market leader in the international pensions market for Qualifying Recognised Overseas Pension Scheme which utilise RATS structures.
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