Personal Pension  

HMRC unveils overhaul of Qrops

HM Revenue & Customs has published plans to change rules for overseas pensions known as qualifying recognised overseas pension schemes, with greater reporting requirements taking centre stage.

HMRC has confirmed it plans to bring in a requirement for an overseas scheme to report payments out of funds transferred from UK pension scheme even if it is no longer a Qrops.

The scheme managers will be allowed to report that information electronically.

A penalties regime for non-compliant former Qrops and a system for scheme managers to re-notify HMRC that they meet the conditions to be Qrops are also being proposed.

HMRC also revealed it plans a relaxation of the benefits tax relief test for overseas public service schemes and pension schemes of international organisations.

The changes also mean HMRC will not have to issue two identical information notices to the scheme manager of a Qrops or former Qrops where this would otherwise be the case.

Last week, FTAdviser sister publication Financial Adviser reported that an abundance of pension advisers passporting into the UK from territories with less stringent controls could cause significant consumer detriment.

Geraint Davies, managing director of Surrey-based financial planner Montfort International, said the misuse of Qrops had contributed to the problem.

HMRC said the deadline for comments on the changes is 21 June 2013. Feedback should be sent to the pensions policy team at HMRC.