HMRC in fresh hit to Guernsey Qrops regime
HM Revenue & Customs has introduced fresh amendments to its revised rules on qualifying recognised overseas pensions schemes to specifically prevent a new Qrops regime in Guernsey from catering for non-resident members.
According to HMRC, a new pension system was introduced in Guernsey to ensure that pension schemes established there could continue to meet the conditions to be a Qrops in the same way as they had before 6 April, when the new rules came into force.
The effect was that the scheme side-stepped the new condition intended to ensure that there is no special tax provision for non-residents under a Qrops.
However, HMRC confirmed in a tax information and impact note that previously unannounced fresh amendments to Qrops regulations, set to come into force on 23 May, specifically exclude Guernsey’s 157 E pension regime.
The move follows on from a crackdown on Qrops in April which saw 300 Guernsey Qrops removed from HMRC’s of approved schemes
HMRC said this measure will ensure a fairer tax system by making changes to the system of transfers of pension savings from registered pension schemes to Qrops.
It added that the move will ensure that “the system continues to be used for its intended purpose of allowing individuals who intend to leave the UK permanently to take their pension savings with them, free of UK tax, to their new country of residence”.
New Qrops rules took effect from 6 April 2012 and changed the conditions that a pension scheme has to meet to be a Qrops.