Q Can a member of a s615(6) Trust also be a member of a UK registered pension scheme?

A Yes. The Inland Revenue permit an individual who is working overseas to remain in the UK pension of his employer. This does not conflict with membership of a s615(6) Trust as membership may be concurrent.

Q Can a UK tax resident be a member of a s615(6) Trust?

A Yes, but only in respect of overseas duties and only if any duties conducted in the UK are incidental to those overseas duties. In practice, this is fairly difficult to achieve.

Q Why should an individual wish to become a member of a s615(6) Trust if he is already a member of a UK registered pension scheme?

A There are several very good reasons:
 - An annual and lifetime allowance applies to the UK scheme, restricting the total benefits which may be payable without draconian tax consequences. The s615(6) Trust is a tax efficient way of overcoming this problem as it operates outside the annual and lifetime allowance regime and suffers no maxima of its own.
Lifetime benefits paid from a UK Registered scheme are subject substantially to income tax. Contributions paid into a s615(6) Trust could be taken as a tax free lump sum payment in the UK.
 - The UK scheme benefits may be satisfactory, but the overall remuneration package may be exposed to undesirable levels of local tax and social security payments for both employer and employee. A s615(6) Trust could be an ideal tool to mitigate such a problem where individuals have income surplus to living requirements and the employer would prefer to structure the package in a more cost effective way.
 - Assets held in a s615(6) Trust which exceed retirement needs can remain outside of the indivdual's estate and would not therefore be liable to Inheritance Tax. The
s615(6) Trust could, therefore, also be used as an estate planning tool.

Q Can the benefits be taken outside the UK?

A Yes. The taxation of lump sum benefits taken outside of the UK will be determined locally. This does not mean benefits will automatically be taxed. However, specialist advice would need to be taken.

Q Can a self employed individual become a member of a s615(6) Trust?

A No. However, creating a UK employment structure or joining an umbrella employment structure is often a perfectly viable alternative to self employment. For company formation and umbrella administrative services contact s615(6) Trustees Limited.

What does The s615(6) Trust cost?

Trust Establishment Fee: Nil

Trust Administration Fee: 1.25% per annum of The Trust Assets. By arrangement this fee can be deducted at source from The Trust Assets.