HMRC update QROPS list
HMRC has published the latest Qualifying Recognised Overseas Pension Scheme (QROPS) List following the recent suspension of the list, iExpats reports.
In the two week suspension, 3,037 schemes and seven financial centres have been delisted.
Although HM Revenue & Customs (HMRC) refuses to discuss individual QROPS, the main reason for the missing schemes is the pension age test introduced on April 6, 2015.
This test aligns the date expat retirement savers can take pension benefits with those in the UK.
The rules specify no benefits can be paid to anyone under 55 years old unless they are in serious ill health.
Many QROPS were certified as complying with UK pension rules although in the home jurisdiction, payments to under 55s is allowed.
As a result, HMRC deemed these schemes do not meet QROPS rules.
“HMRC can’t guarantee these listed schemes meet registered overseas pension scheme rules or that any transfers to them will be free of UK tax. It is the responsibility of the pension member to find out if they have to pay tax on any pension transfer,” said a spokesman.
“HMRC will pursue any UK tax charges and interest for late payment arising from transfers that do not meet rules even when they appear on this list regardless of whether the taxpayers are overseas.”
