HMRC have decided to delist a number of Hong Kong-domiciled QROPS as we have been saying they would for some time. I personally believe that is very positive move for HMRC and financial advisors.  

HMRC has told QROPS providers in Hong Kong that it is studying all QROPS pensions based in the jurisdiction to ensure that they meet with the established requirements.  The UK tax authority is putting ‘clear water’ between occupational schemes which have applied for exemption from regulation and those which have not. 

Those that do not meet the requirements will be removed from HMRC’s list to be published on Thursday 1^st August.

As we suspected – and hoped – HMRC are now taking a more proactive approach to reviewing which jurisdictions should and should not be on its QROPS list.  The Revenue is now more determined than ever, it would seem, to weed out those schemes which many would argue should never have been on the list in the first place.

I wholly support this latest interaction by HMRC, and we believe it should be perceived in a positive light both by QROPS administrators and their pension members.

Inevitably, there will be a smaller list of potential jurisdictions into which UK pensions can be transferred, but the list – and therefore the pension transfer industry itself – will become even more robust.

Clearly, this can only be good news for those legitimate expatriates – and for those who are planning to leave the UK – who are seeking to benefit from the potentially enormous tax advantages and flexibility that QROPS offer.

Nigel Green deVere group

Blog written 31st July

Established in April 2006, QROPS are a type of offshore pension that are recognised by HMRC in the UK. They give registered UK pension holders the option to transfer their pension to another jurisdiction in the event of taking up residency abroad.