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Retirement Annuity Trust Schemes – RATS

Multi‑member RATS

These plans are often designed for Guernsey residents and companies who wish to save for retirement through a cost effective multi‑member retirement annuity trust scheme. As well as accepting regular premiums these schemes are also designed to facilitate smaller pension transfers. These schemes may also be used as start up pensions for those individuals with no previous arrangements.

Bespoke RATS

This very popular type of pension arrangement is a fully approved bespoke scheme established for Bailiwick of Guernsey residents and is available on an individual or joint basis (please note that due to its greater flexability there tends to be higher charges associated with this product).

The main benefits of both Bespoke and Multi member RATS are as follows:

  • RATS may be set up on either an individual or joint basis.
  • Retirement age is flexible and can be anytime between the ages of 50 and 75.
  • Of the fund available at retirement, up to 30% can be taken as a tax‑free lump sum.
  • When you decide to retire and commence drawing a pension, you do not have to purchase an annuity from a life assurance company as the payments can be made direct from the trust funds. This means that the amount of pension can be varied, subject to Income Tax Authority approval.
  • Upon the death of the beneficiary or beneficiaries, all assets remaining in the RATS after tax pass to the heirs, unlike a conventional annuity where the fund is retained by the insurance provider.
  • Loans may be taken from RATS at commercial rates of interest, subject to certain minor conditions. (Often only available via a Bespoke RATS)
  • Flexibility of investment options within the fund.
  • Clean, competitive and transparent charging structures.
  • Ability to transfer benefits from previous schemes, pooling everything under one umbrella, thus allowing greater control of assets. Subject to certain conditions.
  • Tax relief is available on new contributions subject to personal tax status in Guernsey.
  • Asset growth is not subject to UK Capital Gains Tax or Guernsey Income Tax.

Gower Group services

  • Impartial advice as to the suitability of RATS for each individual client.
  • In‑house trust company and provision of trustees.
  • Preparation and sign‑off of annual accounts.
  • Experienced in‑house investment portfolio management team.
  • Regular reporting on performance of fund portfolios.
  • Full assistance with all paperwork involved in setting up the RATS. 

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