Transfers to and from pension schemes
1. Introduction
This third version of this publication replaces that of April, 2006.
2. Definitions
(i) ‘131’, ‘131B’, 131CA (etc) refer to occupational pension schemes / retirement annuity contracts / retirement annuity trusts (etc) approved under the similarly numbered Articles of the Income Tax (Jersey) Law 1961
(ii) ‘sponsoring employer’ means the principal or participating employer (or either) of a 131 scheme
Income Tax (Jersey) Law 1961 on Jersey Law website
3. Transfer to and from Jersey approved schemes
3.1 The following transfers of accrued rights are permitted:
131 to 131
131 to 131B
131 to 131CA
131B to 131
131B to 131B
131B to 131CA
131CA to 131
131CA to 131B
131CA to 131CA
3.2 The following transfers are prohibited:
131 TO 131A
131 TO 131C
131B to 131A
131B to 131C
131A to 131
131A to 131B
131A to 131CA
131C to 131
131C to 131B
131C to 131CA
131CA to 131A
131CA to 131C
3.3 Transfers from 131A and 131C schemes are governed by their own rules but no objection would be raised were those rules to allow transfers between them.
4. Transfers from 131 and 131B and 131CA schemes to Guernsey and the United Kingdom
4.1 When a person leaves Jersey for permanent residence in Guernsey or the UK following a change of employment (self-employment / profession) the following transfers are permitted.
When the person leaves Jersey for permanent residence in Guernsey:
(i) 131 to Guernsey approved schemes
(ii) 131B to Guernsey approved schemes
(iii) 131CA to Guernsey approved schemes
When the person leaves Jersey for permanent residence in the UK:
(i) 131 to U.K. regulated schemes
(ii) 131B to U.K. regulated schemes
(iii) 131CA to UK regulated schemes
4.2 ‘Guernsey approved schemes’ means schemes approved under S150 and S157A of the Income Tax (Guernsey) Law 1975
‘UK regulated schemes’ means schemes regulated under S169 of the Finance Act 2004 and Statutory Instruments 206 and 208 of 2006 (but excludes any such scheme where the person lives outside the UK – see 4.1).
4.3 Transfers to Guernsey or the UK may need permission from the authorities there.
4.4 Transfers to the UK or Guernsey are prohibited unless the criteria in 4.1 are met.
5. Transfer from 131, 131B and 131CA schemes to other territories
5.1 Transfers out of Jersey other than transfers to approved / regulated Guernsey and UK schemes are prohibited and no exceptions are ever made.
5.2 It follows that transfers in to 131, 131B and 131CA schemes from other territories are similarly prohibited.
6. General / administration
6.1 Transfers which are permitted may be made without my specific approval but it is the responsibility of the administrator of the transferring scheme to satisfy himself of the receiving scheme’s bona-fides.
6.2 In the case of a permitted transfer to a 131B or 131CA scheme, the person making the transfer must complete and send us a Retirement Annuity Certificate (RACC) duly adapted to show that the transfer has been made.
6.3 The administrator is responsible for ensuring that the recipient of a transfer value to a 131B or 131CA scheme is ordinarily resident in Jersey.
6.4 In specie transfers between 131B and 131CA schemes will be considered by concession on condition the following are met:
(i) all the conditions for approval are met
(ii) the investments to be transferred are permitted
(iii) approval for the in specie transfer must be obtained from the comptroller before the transfer is made
6.5 In the circumstances where a transfer is requested where the individual has commenced benefits, by election for a tax free cash payment, the trustee / administrator must make a request to the comptroller including full details. The comptroller will consider each request on a case by case basis. The comptroller's approval is required before the transfer can be effected.
7. Anti-avoidance
7.1 Any transfer payment made wholly or mainly for the purpose of gaining a tax advantage will lead to the anti-avoidance provisions of Article 134A being invoked.