Aurora International Plan
Aurora International Plan at a Glance
The Aurora International Plan “the plan” is available to anyone, apart from US connected persons.
The plan is classed as a Defined Contribution Retirement Benefit Plan which is written under contract and which has been approved by the States of Guernsey Revenue Service under section 157A(2) of the Income Tax (Guernsey) Law, 1975. The agreement is between the “plan manager” and the ” plan member” by means of a pension contract.
The plan has been formed to benefit those people who are internationally mobile, or for people who wish to save into a plan to support their existing retirement arrangements.
The plan’s base currency is available in either GBP, EUR, or USD, all fees deducted will be in GBP and a market commercial rate will be applied to any foreign exchange transactions. The member’s assets are held separately in a protected cell company specifically for that individual.
Due to the fact the plan meets the criteria to be a Qualifying Non-UK Pension Plan (QNUPS), this means that the plan remains exempt from UK Inheritance Tax for UK domiciled individuals. Income tax relief on contributions is only available to Guernsey residents.
How can I contribute?
The plan can ease/facilitate the transfer of existing plans held by external providers (including transfers from pre-2012 de-listed QROPS*), whilst accepting additional funds that are classed as being post-tax earnings or from personal savings and capital.
There are no limits or restrictions applied to the contributions permissible to the plan, whether you want to save on a regular basis, make ad hoc payments, or by means of a simple lump sum.
* A QROPS is a qualifying recognised overseas pension scheme. Pre 2017 QROPS transfer may be permitted if the plan & member meets certain criteria – please contact us for additional information
The plan provides access to professional investment management and holistic retirement planning services.
Normally the returns made from the investments within the plan are free from personal tax liability until the point in time that the plan member enters into drawdown or receives benefits from the plan. These payments may be taxable in the plan member’s country of residence.
What happens when I reach retirement?
You are able to apply for retirement benefits from the age of 55 years as a member of the plan, however this is not mandatory and you can defer this until the age of 75. In the case of ill health, you may be able to access funds earlier. Please contact us if you have any questions relating to ill health.
When you do start drawdown, you have the option to take up to 30% (or 25% for UK residents) of the value of your pension contract on that date as a pension commencement lump sum (PCLS). Again, your country of tax residency will dictate whether the PCLS is taxable or not.
Regular income from the pension contract is calculated using the plan value and is set for a period of three years. Once this time passes, the value of the pension funds will be used to calculate the next three-year pension period.
The alternative option is to buy either a guaranteed income annuity or a temporary annuity from an annuity provider.
You should be aware that there is no guarantee that the funds in your account will be sufficient to pay an annuity until your death. On your death the income of the balance of your pension fund (if any) can pass to your nominated beneficiaries or dependants.