QROPS (International Pension Transfers) Tax Penalty

QROPS (International Pension Transfers) Tax Penalty

This is  a warning  to ensure you are fully aware of the risks of using a QROPS (qualifying recognised overseas pension scheme) after HMRC confirmed it is monitoring the schemes closely.  

HMRC deregistered all Singapore based QROPS, leaving members open to an unauthorised payment charge of 55 per cent of their transferred pension fund.  

Our view

If an overseas pension scheme is not a QROPS, transfers from UK registered schemes out of UK tax-relieved funds will not be recognised as transfers and will attract a tax charge.

We suggest for HMRC to take such action there must be significant abuse but we suggest it is a complete breach of our rights to approve schemes and then withdraw approval with a possible tax charge.  If HMRC approved schemes or the pension laws in certain territories than that is their problem.  
Any tax penalties should not be retrospective.

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