The scheme managers will also be allowed to report the information electronically.
The proposals also make provision for a penalties regime for non-compliant former Qrops and include a system for scheme managers to re-notify HMRC that they meet the conditions to be a Qrops scheme.
HMRC has also revealed that it plans to relax the benefits tax relief test for overseas public service schemes and pension schemes of international organisations.
The changes also mean that HMRC will not have to issue two identical information notices to the scheme manager of a Qrops or former Qrops, which was the case.
Adviser view
Geraint Davies, managing director of Surrey-based financial planner Montfort International, said: “These proposals just tidy the whole matter up, so that scheme managers avoid errors and omissions, and they are crystal clear about what is required of them. The penalties regime has also been reinforced, which is a good sign. The fact that HM Revenue & Customs also states that it will take action if it believes a scheme prejudices it from getting the tax that it is due, also suggests that it is fully aware of the problems regarding transfers into unsuitable schemes.”
Background Last week, Mr Davies warned that the fight against pension liberation companies should go international to stop pension advisers passporting into the UK from territories with less stringent controls and transferring client money into unsuitable Qrops. Several pension providers have also announced a range of tactics to combat pension liberation firms in the UK. |