QROPS Legislation Changes - The Reporting Period
Posted by Simon Harvey on 12/12/11 14:07
Qualifying Recognised Overseas Pensions Scheme (QROPS) specialist advisers, Global QROPS Ltd, are looking at the implications at HMRC (Her Majesty’s Revenue and Customs) proposed changes to the QROPS legislation.
In what will include the most significant changes, for transferring UK pension benefits overseas, since 6th April 2006 – the new proposed legislation will affect all involved in QROPS.
Amongst the key points, in the potential changes, is the difference in the ‘reporting period’ from 6th April 2012.
As the QROPS rules currently stand, once benefits are transferred from a UK pension to a QROPS, the QROPS trustees (or administrators) are obliged to report any payments to the member (or member’s beneficiaries), to the UK’s HMRC, for 5 complete UK tax years of the member’s non-UK residency.
The new changes indicate that the reporting period will be 10 years from date of ‘transfer’- rather than for 5 years of the member’s non-UK residency.
Global QROPS understands that the implications for an individual, already resident outside of the UK for 5 complete UK tax years, will be that any transfers from their UK pension to a QROPS, from 6th April 2012 would mean that their benefits would be subject to reporting back to HMRC for 10 years from the transfer.
Many non-UK residents, with UK pensions, should seek expert QROPS advice from overseas pension transfer specialists, such as Global QROPS Ltd, to take advantage of the existing rules before the proposed changes come into effect in April 2012.