Although Her Majesty’s Revenue & Customs have amended the Draft Finance Bill, the updated legislation simply asks scheme providers to keep them posted on any income stemming from UK pension transfers, after first illustrating the suitability of both their products and their outfit, by meeting the pre-determined criteria. Unsurprisingly, QROPS providers could be excluded from HMRC’ approved list should they fail to do so at least once every five years.
Extra compliancy conditions are never welcomed and 2012’s in-depth changes and demands were no exception. They stipulated the dynamics of any and all applicable taxes, before asking providers to prove that the purpose of their client’s pension fund was in fact to provide for them throughout their retirement. These most recent updates have come as part of HMRC move that some suspect is part of a greater, more determined effort towards ensuring all UK Expat’s finances are taxed in the UK.
QROPS have proved their power to plenty of pensioners and retirees alike. With the on-going input and proper regulation provided by HMRC, it’s thought that this will simply continue and perhaps even lead to a significant increase in their uptake. Inland pension schemes are subject to similar conditions here in the UK, so subjecting the QROPS and their providers to the same scrutiny should encourage retirees to investigate their tried and tested worth.
Midway through the year, similar developments surrounded Maltese QROPS as well as those in the Isle of Man; pensions expert John Batty commented: “The changes introduced by the HMRC in this part of the world mean operators like ourselves need to identify a jurisdiction with sound pension legislation and a good number of double taxation agreements to be able to administer qualifying recognised overseas pensions schemes.”
The added obligation to provide the aforementioned feedback has upset some scheme providers of course, but even they’ll agree that the news could’ve been a whole lot worse. Now, in light of what effectively equates to excellent news for anyone involved in the pension or investment sectors, financial advisors and international pension providers in particularly, are now preparing for an influx of QROPS-based inquiries. Contact a financial advisor for more information.
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