Product News – STM QROPS

STM Group which own STM QROPS have announced that their STM Malta Pension Contract Plan is now listed on the HMRC ROPS website

This is a contract based pension, rather than a trust based pension. A number of countries, that are based on Civil Law, do not recognise trusts. This does not mean that they cannot see trusts, it means that they tend to look though them and treat them no differently for tax than other investment platforms. Often negating the reason for the trust.

STM Group have recognised this problem and offer a solution.

Trust Based Pension

A pension scheme is established  under a trust deed. A trustee company is appointed to ensure compliance with the trust deed and rules. The pension is therefore governed by the trust deed and rules.

Contract Based Pension

Contract-based pension schemes are individual contracts between the member, and the pension scheme provider. The scheme provider is usually an insurance company or an investment platform, but can also be an independent provider.

The pension is set up under deed poll). The scheme provider is the scheme administrator and there are no trustees.

It may well be that there is reference to a trust deed and rules to avoid Inheritance Tax on the disrectionary distribution of death benefits .

Tax Advice   

STM Group do not offer tax advice and so anyone considering such a contract based product, be that with STM Group or any other scheme provider, should make sure they get appropriate advice before moving their pension outside of the UK.

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