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With effect from the 6th of April 2012 the government put new legislation into location that changed the QROPS tax rules. These individuals who might 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 implies that they then grow to be subject to the tax laws inside that country.

This write-up will give a standard QROPS guide as to the important modifications to the regulations which had been produced in April 2012. Firstly, the tests to turn into an overseas pension scheme and a recognised overseas pension scheme require to be firmed up, in order to make certain the guidelines will operate as originally intended. The registered pension scheme (RPS) must be offered with new member details together 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 added details is now to be offered.

Alterations have also been made to the period in which a QROPS has to report details to HMRC, so QROPS advisers will want 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. Although these important modifications became efficient on 6 April 2012, a transition period has been taken into consideration.

Other alterations to the regulations within the QROPS guide involve amendments for new overseas schemes in search of to attract transfers of UK tax-relieved funds. QROPS advisers require to be aware of adjustments to the APSS251 form, which enables schemes to notify HMRC that they meet the needs to become a recognised overseas pension scheme. The new reporting process ought to be utilised by any payments produced or deemed as created by these schemes. Please note the ten year reporting period will nevertheless apply to all payments made by a QROPS on or following 6 April 2012, even for those members who have not been a UK resident for more than five full tax years.

There are a lot of critical pieces of info which need to have to be taken into account when setting up or transferring QROPS. It is extremely recommended that advice is taken from a qualified QROPS adviser in order that up to date and accurate info is transferred. qualifying recognised overseas pension scheme financial advisor farnham financial adviser farnham