Pension transfer delays expected as HMRC misses Rops deadline

By Kirsten Hastings, 6 Jun 17

Pension transfers are likely to be delayed and providers, advisers and clients have been left in limbo after HM Revenue & Customs failed to publish a new list of recognised overseas pension schemes (Rops) that was scheduled for Monday.

Rops charges

Hammond imposed a 25% charge on pension transfers outside of the European Economic Area if the Qrops destination is not the same country in which the retiree plans to live.

The chancellor added an additional caveat, where the charge could be applied retroactively if the retiree moves out of the EEA or to another non-EEA country within five years of the transfer.

Schemes were given until 13 April to notify HMRC that they were compliant with the new rules.

ASAP

“The April and May Pension Schemes newsletters set out the planned changes to the scheduled publication of the Rops notification list this month,” the HMRC spokesman told IA.

“This has allowed for an update for the removal of schemes that either have notified us that they no longer meet the requirements due to the regulations that took effect from 6 April or did not reply to the information notice we sent out.

“It will be published as soon as possible.”