QROPS changes 2013
The Draft Finance Bill add’s a few new reporting requirements, including an obligation for scheme administrators that every five years they notify HMRC that their scheme continues to meet the conditions to be a QROPS.
Failure to comply with this new rule, which is to be introduced in Finance Bill 2013, could lead to the scheme in question being excluded from being a QROPS.
Secondary legislation is also due to be introduced, it goes on to say, that will require scheme managers to report to the Revenue any payments made out of transfers of pension savings they have accepted from UK pension schemes, “even when that scheme has ceased to be a QROPS since accepting the transfer”.
In simple terms the above means that trust companies must say within QROPS rules and indeed confirm each 5 years that it continues to do so.
Secondly all schemes must report even if they cease to a QROPS. Some within the industry have wrongly been suggested that people can withdraw from schemes if they cease to be QROPS. This is not the case and would cause an authorised payment charge.
I for one welcome the changes . QROPS for people who have left the UK have many benefits. It’s important the QROPS are used correctly and not abused by a few.
Nigel Green deVere Group
Blog written 12th December