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With impact from the 6th of April 2012 the government place new legislation into location that altered the QROPS tax rules. These folks who might have a QROPS or qualifying recognised overseas pension are these that have retired overseas and transferred their pension pot to one particular of the HMRCs recognised schemes. This implies that they then grow to be subject to the tax laws inside that country. investment management This article will provide a basic QROPS guide as to the key modifications to the regulations which were produced in April 2012. Firstly, the tests to turn out to be an overseas pension scheme and a recognised overseas pension scheme want to be firmed up, in order to ensure the rules will function as initially intended. The registered pension scheme (RPS) must be provided with new member data 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 extra details is now to be supplied. Alterations have also been made to the period in which a QROPS has to report information 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 should be reported within 90 days on a revised paper form. Even though these essential modifications became effective on 6 April 2012, a transition period has been taken into consideration. Other alterations 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 have to be conscious of adjustments to the APSS251 form, which enables schemes to notify HMRC that they meet the specifications to turn into a recognised overseas pension scheme. The new reporting procedure should be utilised by any payments made 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 immediately after 6 April 2012, even for those members who have not been a UK resident for more than five full tax years. There are numerous crucial pieces of information which want to be taken into account when setting up or transferring QROPS. It is very recommended that advice is taken from a qualified QROPS adviser in order that up to date and accurate information is transferred.