GUERNSEY looks set to introduce a new pension regime, under which benefits would not be taxable, to resolve the threat of the closure of the Qrops industry.

The island’s response to the UK’s proposed tightening of its Qrops laws is to equalise the treatment in terms of taxation of pension benefits for residents and non-residents.

Neither would, in the future, be taxed on payments received from a pension fund.

Instead, the States will be asked to agree that a new type of pension arrangement should be established, where no tax relief would be given on contributions and no tax charged on payment.

It would be available to islanders and non-residents.