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With effect from the 6th of April 2012 the government place new legislation into location that altered the QROPS tax rules. Those people who may possibly have a QROPS or qualifying recognised overseas pension are those that have retired overseas and transferred their pension pot to a single of the HMRCs recognised schemes. This signifies that they then turn out to be subject to the tax laws inside that country.

This post will offer a simple QROPS guide as to the crucial alterations to the regulations which were produced in April 2012. Firstly, the tests to become an overseas pension scheme and a recognised overseas pension scheme require to be firmed up, in order to make certain the guidelines will function as initially intended. The registered pension scheme (RPS) need to be provided with new member information with each other with a signed acknowledgement, prior to the pre transfer out of RPS. There has also been an update to the timeframe for an RPS to report a transfer to a QROPS, and additional information is now to be provided.

Adjustments have also been produced to the period in which a QROPS has to report details to HMRC, so QROPS advisers will need to have to take this into account when updating their customers. The new regulations also state that payments by QROPS must be reported inside 90 days on a revised paper form. Despite the fact that these essential changes became effective on 6 April 2012, a transition period has been taken into consideration.

Other adjustments to the regulations inside the QROPS guide involve amendments for new overseas schemes seeking to attract transfers of UK tax-relieved funds. QROPS advisers need to be conscious of changes to the APSS251 form, which enables schemes to notify HMRC that they meet the specifications to become a recognised overseas pension scheme. The new reporting procedure must be utilised by any payments produced or deemed as made by these schemes. Please note the ten year reporting period will still apply to all payments made by a QROPS on or right after 6 April 2012, even for those members who have not been a UK resident for more than five complete tax years.

There are a lot of important pieces of information which need to have to be taken into account when setting up or transferring QROPS. It is very suggested that suggestions is taken from a qualified QROPS adviser in order that up to date and correct data is transferred. qrops guide financial adviser farnham qrops specialists