The surprise statement is in relation to the Recognised Overseas Self Invested International Pensions Retirement Trust (Singapore), a pension scheme promoted by a company called Panthera, and which claimed to have QROPS registration, but which had its status removed in 2008.
A number of court cases followed the removal of this status and it was finally ruled that the scheme had never been a QROPS and therefore that any transfers to it were unauthorised and would elicit a 55% tax charge.
However, as reported, some members of the scheme, who are being asked to pay the 55% unauthorised transfer charge, argue that because when they transferred their pensions into the scheme, it was on HMRC’s list of registered schemes they have a legitimate expectation that transfers to ROSIIP would not attract tax liabilities.
The claimants were last month awarded a group litigation order to pursue the case by the UK’s High Court.
HMRC are contesting this and said in a statement released late last week: “Transfers of UK pension savings can be made free of UK tax if transferred to a pension scheme that is a qualifying recognised overseas pension scheme (QROPS).
“As ROSIIP had notified HMRC in 2006 that it met the conditions to be a QROPS, it appeared on a list published on the HMRC website along with other pension schemes that had similarly notified HMRC. In 2011 the High Court found that ROSIIP had never been a QROPS and this was upheld in 2012 in the Court of Appeal.
“HMRC is actively resisting these claims and any further claims brought may be out of time.”
HMRC had been asked by the High Court to make the statement, which can be viewed here, to ensure that those who made transfers to ROSIIP are aware of the group litigation order.
