How new Isle of Man pension freedoms differ starkly from the UK
By Mark Battersby, 23 Feb 18
The Isle of Man budget on 20 February introduced the concept of pension freedoms to the island’s pensions legislation, setting out some stark differences to the already established UK rules.
Demand driven
The introduction of pension freedoms into the UK was largely seen as politically driven, coming just before a general election it was perceived as a vote winning exercise. Coupled to this was the desire to raise more taxes quickly and to provide a stimulus to the flagging economy at the time.
Recent HMRC data shows that more than £14bn has been transferred out of defined benefit pensions since pension freedoms came into effect. Much of this will have been taxed and made its way into the economy.
In the Isle of Man, the rule changes have been much more of a reaction to public demand, with Isle of Man residents wanting the same flexibility as those living in the UK.
Tags: David White | Isle Of Man | Pension Freedoms | QB Partners | UK Adviser
