Interest in offshore pension arrangements, already stimulated by the QROPS rules under FA 2004, has received a further fillip from the Isle of Man. Tynwald has recently approved significant changes to Isle of Man tax legislation as it relates to approved pensions arrangements. The Income Tax (Pensions) Bill 2007, which is currently awaiting Royal Assent, changes the extent to which tax relief on contributions is granted and how scheme members can access the funds. Commencement is expected to be made retrospective to 6 April 2008.

Following its passage through Tynwald, on 14 April the Income Tax Division published a consultation document on the draft orders and regulations needed to support provisions being introduced via the Bill.

Royal Assent is unlikely to occur before the Tynwald sitting scheduled to take place on 17 June 2008. After formal enactment the new legislation will be posted on the web.