On Friday 24 May, HM Revenue & Customs (HMRC) released the Draft Registered Pension Schemes and Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2013.
The draft regulations provide some much sought after clarity for the requirements and obligations of “former” QROPS.
In short the key provisions that are outlined within the new draft regulations detail how scheme administrators of “former” QROPS should manage these on an ongoing basis. This includes the introduction of a penalty regime for non-compliant “former” QROPS and the introduction of reporting requirements for “former” QROPS.
The effective date for the implementation of the new regulations is yet to be confirmed, but HMRC has confirmed the legislation is only set to apply to schemes delisted on or after the effective date.
Therefore, HMRC’s “former” QROPS reporting regime appears to only refer to QROPS that de-list or are delisted after the new regulations become effective, and thus schemes that have previously ceased to become a QROPS, such as Concepts range of Guernsey based Aurora QROPS, will not fall into the new reporting regime.
In conclusion, it would appear members of the Guernsey based Aurora schemes remain well placed, having achieved a tax free transfer out of the UK system and not needing to comply with ongoing and more detailed reporting.
See the following link for International Adviser’s recent article, which appears to confirm HMRC’s stance for “former” QROPS: