BondWorthen408

With effect from the 6th of April 2012 the government put new legislation into place that changed the QROPS tax rules. Those people who may have a QROPS or qualifying recognised overseas pension are those that have retired overseas and transferred their pension pot to one of the HMRCs recognised schemes. This means that they then become subject to the tax laws within that country.

This article will provide a basic QROPS guide as to the key changes to the regulations which were made in April 2012. Firstly, the tests to become an overseas pension scheme and a recognised overseas pension scheme need to be firmed up, in order to ensure the rules will work as originally intended. The registered pension scheme (RPS) must be provided with new member information 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 additional information is now to be provided.

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

Other changes to the regulations within the QROPS guide involve amendments for new overseas schemes seeking to attract transfers of UK tax-relieved funds. QROPS advisers need to be aware of changes to the APSS251 form, which enables schemes to notify HMRC that they meet the requirements to become a recognised overseas pension scheme. The new reporting process should be utilised by any payments made or deemed as made by these schemes. Please note the 10 year reporting period will still apply to all payments made by a QROPS on or after 6 April 2012, even for those members who have not been a UK resident for over five full tax years.

There are many important pieces of information which need to be taken into account when setting up or transferring QROPS. It is highly recommended that advice is taken from a qualified QROPS adviser in order that up to date and accurate information is transferred. 0.37 4 3.30 4 1.68 3