Transferred pensions could face tax charge

Tuesday 11th April 2006, 12:00AM BST.

TRANSFER of some pensions from the UK to Jersey could in future be liable for a 40% tax charge, it has emerged.

As reported last month, the pensions transfer agreement between the UK and Jersey, Guernsey, the Isle of Man and Ireland came to an end on 6 April – dubbed A-day – when the UK’s far-reaching pension changes came into force.

In practice, says Jersey’s Income Tax Department, there should be no difference and Jersey residents should be able to transfer pensions if they move to the UK and vice versa, if people are moving from the UK to live and work in Jersey.

But one JEP reader has expressed concern that some pensions could fail to satisfy the requirements of Her Majesty’s Revenue and Customs department and this has been confirmed by practitioners.

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