As reported, HMRC inadvertently published on its website on 14 March the guidance notes relating to new regulations for qualifying recognised overseas pension schemes, plans for which were announced unexpectedly back in December. The final version of these regulations were released last week, on Budget Day.
As QROPS-watchers who rushed to download yesterday’s missive were quick to notice, some changes had been made during the two weeks between their accidental and formal publications.
On Page 1 of the new version, for example, after the sentence “Any scheme that is established in New Zealand will also need to look at the revision that has been made to the definition of a recognised overseas pension scheme” the following extra sentence has been inserted:
“There is no need for the scheme to report that it continues to meet the conditions unless there has been a material change to the scheme. A material change must be reported.”
Another area where the changes made were more than cosmetic is on Page 9 of the new version, Page 8 of the old version, where “The benefits exemption test” has been changed to “The benefits tax relief test”.
“Where an exemption from tax in respect of benefits paid from the overseas pension scheme is available to members of the scheme who are not resident in the country or territory in which the scheme is established, the exemption must…” has been changed to “Where tax relief in respect of benefits paid from the overseas pension scheme is available to members of the scheme who are not resident in the country or territory in which the scheme is established, the same or substantially the same tax relief must…”
To view the new version of the guidance notes on HMRC’s website, click here.
To view the version published accidentally on HMRC’s website two weeks ago – now on International Adviser’s website – click here.
In a statement which accompanied yesterday’s release of the guidance, HMRC summarised the changes, being introduced from 6 April, as follows:
- [They] firm up the tests to be an overseas pension scheme and a recognised overseas pension scheme to make the rules work as always originally intended
- New member information and signed acknowledgement [are] to be provided to the registered pension scheme (RPS) pre transfer out of RPS
- A revised timeframe for an RPS to report a transfer to a QROPS [is provided for], as well as additional information to be provided and a switch to reporting via a paper form
- Changes [are being made] to the period in which a QROPS has to report information to HMRC
- Payments by QROPS [are] to be reported within 90 days on a revised paper form
