Wealth Management

INTERNATIONAL PENSION SCHEMES

What is a s615 International Pension Scheme?

Mulbury Hamilton Limited can facillitate an international pension scheme that is designed to be accepted by HMRC in the UK pursuant to s615(6) of the Income and Corporation Taxes Act 1988.

Established at the employer level, each scheme is designed to permit a company employing UK nationals, working outside of the UK to establish a UK based pension. If the employer is a UK company a corporation tax deduction may be obtained.

There are four categories of people who can benefit:

• Employees of UK companies whose duties are conducted wholly outside the UK;
• Employees of multi-national employers where an overseas parent company has a presence in the UK;
• Employees of UK companies are resident in the UK but who undertake both duties inside and outside of the UK; and
• Nationals of any country who are self employed/contracting and working outside the UK.

Employers must establish the scheme under irrevocable trust and for the sole purpose of providing superannuation benefits.

In respect of each scheme Mulbury Hamilton will arrange a firm of trustees to provide:

• Scheme documentation
• Apply for scheme acceptance
• Trustee and administration services

How do s615 International Pension Schemes work?

S615 international pension schemes work much like other employer based pension schemes. An employer can establish a scheme for the benefit of its employees and appoint an independent trustee to run it. The employees can participate in the scheme. The employer can make contributions to the scheme for the benefit of specific employees.

Expatriates have a unique opportunity to make tax-deductible contributions to a gross fun. The s615 International Pension Scheme is the first vehicle to offer this combination of advantages.

SUITABILITY AND ADVANTAGES

Who is a s615 International Pension Scheme suitable for?

A scheme may benefit an employer which has employees whose work is undertaken wholly or partially outside the UK. The advantages and benefits of a s615 Scheme, for both employers and employees, are set out below:

For the employer:

• Contributions allowable as a deduction against corporation tax for an employer based in the UK
• No UK National Insurance cost for the employer (or employee).

For the employee:

• No tax liability for the employee;
• 100% commutation of the accumulated fund at retirement date;
• 100% commutation of the accumulated fund on leaving service;
• 100% commutation of the accumulated fund on return to the UK, in the same employment;
• Allows employees to manage exposure to local tax/social security;
• Can take benefits after leaving service; and
• Can be paid to employee’s nominated beneficiary in respect of death benefits.

Contributions:

• Generous contribution levels (including no minimum0;
• Continuity of contributions where employee relocates internationally; and
• Regular/ on-going contributions permitted.

Permitted Investments:

• Equities;
• Fixed interest securities;
• Money funds;
• Property and insurance policies; and
• cash

Mulbury Hamilton are not FSA regulated and refer clients to award-winning leading investment providers that we have worked with our clients for many years.