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NEST release pension jargon busting book
HMRC's consultation period on QROPS will end on January 31st. A QROPS (Qualifying Recognised Overseas Pension Scheme) is an overseas pension scheme into which UK pension rights can be transferred.
Legislation due on 6 April 2012, dubbed Q-Day, will implement tougher reporting requirements to combat offshore tax abuse.
David Higgins, technical expert and director for Fairbairn’s at Overseas pensions has recently said that QROPS that fail to abide by rule changes will not be hit by member charges.
Basically, if an advisor has transferred a client’s UK pension to a QROPS and it ceases to be established as a QROPS there will be no implications for member payment charges, providing the scheme fulfills its HMRC obligation.
But just because a scheme stopped being a QROP doesn’t mean they get let off the hook.
Higgins has suggested that stronger reporting responsibilities will pave the way for further regulatory intervention.
The revenue is due to receive a lot more information on QROPS than ever before in terms of payment, exactly what they will make of that information remains to be seen.
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