Changes to pensions legislation in Guernsey

Wednesday, January 18, 2012

Guernsey's pensions legislation was updated in 2011 with a number of benefits to pension plan members.

For example, there is no monetary limit on the amount which may be contributed to an approved scheme and the amount on which tax relief is available has increased to the lower of £50,000 per annum or 100% of taxable income.

The tax free lump sum has also been increased from 25% to 30% and commutation will not be dependent upon pension or annuity benefits commencing at the same time.

Subject to scheme rules, an individual need no longer actually retire to activate benefits.

A Carry Forward Provision has also been introduced so that if an individual has not been able to take full advantage of the tax relief available to him in any one year, he may carry forward the unused relief to a later year for a maximum period of 6 years.

For further information please contact GTC or refer to the States of Guernsey Income Tax Authority website which provides full details.