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QROPS and Brexit negotiations

“The big difference between Gibraltar and the UK is that Gibraltar has a very clear view of where it needs to be,” said Picardo. “The UK economy is larger and has many more moving pieces, so it’s harder to move from the shock of the morning of the 24th to a clear position which takes into consideration all of those areas.”

Gibraltarians voted by an overwhelming 96 per cent to 4 per cent to stay in the EU – a higher margin than in any other eligible voting district. This has led to speculation that Gibraltar might somehow remain in Europe while maintaining its status as a British Overseas Territory. There is a precedent, of sorts. Greenland, which is, in effect, a Danish overseas territory, voted to leave the EU while still retaining its political links to Denmark.

Picardo has gone so far as to describe a “hard exit” Brexit deal as an “existential threat” to Gibraltar. This is partly because each day thousands of Spanish workers cross into Gibraltar to work; something which may not be tenable if Brexit negotiations bring an end to free movement of labour between the EU and the UK, including any overseas territories.

As it stands it is still possible, and potentially crucial, for British expats to seek financial advice in order to ensure a Gibraltar QROPS, although the continuance of this arrangement is likely to be something that will be up for discussion during Brexit negotiations.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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Non-compliance, even if it is inadvertent, has the potential to be met with uncompromising penalties, so anyone who is any doubt about their tax obligations regarding offshore investments – if you have expat regular savings or wealth management concerns outside of the UK – should contact their financial adviser immediately as a matter of urgency.

The penalty for most breaches is 200% of the tax that has been avoided. However this may be reduced to 100% depending on the taxpayer’s perceived level of compliance. That said, the minimum is 150% in cases where disclosure has been prompted by HMRC. Larger non-disclosures may be punished by further penalty of 10%

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Since returning and announcing the referendum on 23rd June, people he once considered good friends, allies and colleagues who he could count on for support have decided to join the out camp and now this is gaining momentum.

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