The statement, from an official HMRC spokesman, is expected to put an end to the confusion among some pension fund administrators as to whether, and to what extent, the hundreds of schemes delisted by HMRC last year would be affected by the new reporting requirements.
As currently spelled out in the draft document, these new rules would oblige all former QROPS to report any payment transfers within the same required 10-year period from the date of transfer that is currently required of existing QROP schemes.
The statement from HMRC confirms information circulating in the market, as reported yesterday, which was also understood to have come from HMRC.
As reported, the Revenue is inviting comments on its draft regulations until 21 June.
‘Will not apply’
In a statement, the HMRC spokesman said that as currently spelled out in the draft document issued on 24 May, “the new reporting requirements will not apply to schemes that have already ceased to be QROPS,” or any others that might cease to be, before the regulations come into force, probably “sometime later this year”.
In addition to the new reporting requirements for all QROPS that cease to be QROPS at some date in the future, the draft regs also introduce 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 a QROPS.
A relaxation of the so-called benefit tax relief test for overseas publish service schemes, and the pension schemes of international organisations, is also included in the draft regulations.
To read more about the proposed changes to the QROPS legislation on HMRC’s website, click here.
