International Pension Plans
Guernsey International Pension Plans are available to non-Guernsey resident employers to provide benefits for employees who are not residents of Guernsey and who do not carry out any duties of their employment in Guernsey. Where the employee is neither living nor working in Guernsey, then the IPP benefits are free from Guernsey tax.
The IPP offers a flexible solution for internationally mobile employees especially when it comes to investment of the funds, member contributions and benefits.
The trustees are not restricted to the traditional insurance company products that you might see in a typical defined contribution plan. Because of the attractive taxation status of the IPP, the trustees can generally follow investment guidelines tailored to suit the needs of the employee and adjust them as the employee’s circumstances change. We can also assist with the structuring of discretionary investment portfolios.
Members can make regular, single or ad hoc contributions to the IPP according to their preference.
When it comes to taking benefits, the Guernsey legislation permits the payment of retirement benefits at any time between the ages of 50 and 75 and no Guernsey withholding tax is levied upon distributions. There is no obligation to purchase an annuity upon retirement and there are options for the member to take a lump sum in some cases.
It is essential that specific advice be sought by anyone considering the use of an IPP and we can recommend legal and tax advisors as necessary to assist.
Contact Clive Damsell