On 6 December 2011 draft secondary legislation to make changes to the system for transfers of pension savings to qualifying recognised overseas pension schemes (QROPS) was published for an 8 week consultation.
This document contains the draft guidance in relation to the changes to the system for transfers of pension savings to QROPS that is the subject of an 8 week consultation.
Once the regulations take effect the guidance will be incorporated into the Registered Pension Schemes Manual which is available on the HM Revenue & Customs website.
This guidance applies with effect from 6 April 2012
For guidance applicable before 6 April 2012 see RPSM14101020
Overview of changes
• Summary of what the changes are – firm up the tests to be an overseas pension scheme to make the rules work as always originally intended. – new member information and signed acknowledgement to be provided to the RPS pre transfer out of RPS – revised timeframe for an RPS to report a transfer to a QROPS as well as additional information to be provided and a switch to reporting via a paper form. -changes to the period in which a QROPS has to report information on payments to HMRC
–payments by QROPS to be reported within 60 days on new paper form
• When changes take effect – the changes come into effect on 06 April 2012 although there are a couple of transitional aspects The key changes for affected parties to be aware of are:
• New overseas schemes seeking to attract transfers of UK tax-relieved funds:
-A revised form APSS251 is available for schemes to notify HMRC that they meet the requirements to be a recognised overseas pension scheme. This information will be required for any notifications dealt with by HMRC after 5 April 2012.
-The new reporting process will be applicable to any payments made or treated as made by these schemes.
• Existing overseas schemes that have already notified HMRC that they meet the requirements to be a recognised overseas pension scheme.
-These schemes will need to ensure that they meet Conditions 3 and 4 of the requirements to be considered an overseas pension scheme. Any scheme that is established in New Zealand will also need to look at the revision that has been made to the definition of a recognised overseas pension scheme.
-There is a new reporting requirement for a scheme that ceases to be a QROPS after 5 April 2012.
-The revised reporting requirements are applicable to any payments made from a QROPS after 5 April 2012.
-There is a new obligation to notify HMRC of any material changes to information that has been provided to HMRC previously in relation to the information requirements.
• Registered Pension Schemes
-Need member information before transfer. Need to report transfer within 30 days on APSS262. Transfer made on or before 05.April 2012 report online on ‘old’ basis.
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Every care is taken to ensure that the information on this site is accurate and up to date. However, we cannot accept any liability for error or omission with regards to the content of the site. The Qrops Specialist cannot be held liable for any tax payable by the policy holder or otherwise now or in the future that may arise from a pension transfer, whether it be UK tax, or elsewhere. We operate websites dealing mainly with QROPS and pension transfers. The sole aim of this website is to offer the visitor information concerning QROPS and pension transfers and its content should not be seen as financial advice. Please note that we are an information only service and do not provide financial, tax or investment advice, The Qrops specialist act as an introducer of business to the specialist pension transfer companies and investment companies.
