The Sovereign Gibraltar Personal Pension Scheme

The scheme can receive one-off or regular contributions and accept pension transfers from other Gibraltar-based pension schemes. It can also accept contributions from the Member’s employer. While contributions are uncapped, tax-relieved limits will apply.

There is no minimum investment amount, and fixed fees apply when using a single portfolio. Investments must be made in line with permitted investments under Income Tax Rules and Pension Rules.

The scheme is available from age 55 and before age 75. Pension income can be taken after a 25% lump sum. A 100% lump sum withdrawal is available on retirement, which consists of a 25% lump sum and a 75% lump sum payment in lieu of purchasing an annuity.

Tax relief on contributions is available up to 20% of your annual earnings (or £35,000 if lower) for those taxed under the Allowance Based System in Gibraltar, and up to £1,500 annual tax relief for those taxed under the Gross Income Based System in Gibraltar. There is a Gibraltar income tax exemption on investment income in the scheme and no capital gains tax.

On retirement, a 25% tax-free lump sum is available, or a 100% tax-free lump sum if 75% is taken as payment in lieu of purchasing an annuity. If pension income is received, it will be taxable in Gibraltar at a rate of 0% from the age of 60, and at the marginal rate of Gibraltar income tax between the ages of 55-59.

The entire fund is payable to beneficiaries upon the death of the member, tax-free in Gibraltar. The tax position in the country(ies) of residence of the member/beneficiary should be considered separately.