Guidance

Pension schemes newsletter 69 - June 2015

Published 15 June 2015

1. Relief at source - annual returns of individual information for 2014 to 2015

At the end of April 2015 HM Revenue and Customs (HMRC) issued notices requiring pension schemes operating relief at source to submit the annual return of individual information for 2014 to 2015 (also known as the RPSCOM100(Z)) to HMRC by 5 October 2015.

If you are a pension scheme administrator operating a relief at source pension scheme but have yet to receive a notice requiring you to submit this information, please email: pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘Relief at Source’ in the subject line of your email.

This is a reminder that failure to submit this information by the deadline will hold up any subsequent interim repayments pending receipt of the information. Where a submission is made, but fails processing, this is still deemed to be outstanding and any subsequent interim repayment claims will be stopped pending re-submission.

Since October 2014, we have stopped a number of interim repayment claims for non-submission or submission failure and where possible, have been working closely with pension scheme administrators to help them meet their obligations.

You can find more information on relief at source repayments and the member information we ask for relating to relief at source.

2. Registration figures 2014 to 2015

For 2014 to 2015 HMRC received in total 7,719 applications to register pension schemes. This is a 50% reduction compared to applications received in 2013 to 2014.

Of these schemes 90% have been registered and HMRC has currently refused registration for about 7% of applications. No decision has yet been made on the remainder.

3. Pension flexibility

a. Pension flexibility - April 2016 changes

Since the pension flexibility changes took effect from 6 April 2015 we are now starting to work on the April 2016 changes which includes changes to the pension death benefit rules. Following feedback, we are keen to work more closely with the pensions industry over the next year and would welcome your thoughts on how we can achieve this, including how we communicate key messages throughout the year.

Please email your thoughts on this to email: pensions.businessdelivery@hmrc.gsi.gov.uk and put ‘Pension Flexibility - Feedback’ in the subject line of your email.

b. Pension flexibility - in-year repayments

In Pension schemes newsletter 68, we told you about the new in-year repayment processes for individuals taking pension flexibility payments and explained that there are 3 new forms which should be used in these cases - the P50Z, the P53Z and the P55.

We have a 30 day turnaround (from the date the information is received by HMRC) for processing these new forms.

We are aware that individuals are using the standard P50 and P53 forms to request in-year repayments where a pension flexibility payment has been taken. However, this means that repayments claimed in this way do not fall within the priority 30 day processing deadline.

Please remind your members that to avoid unnecessary delays, they should use these new forms to request in-year repayments where a pension flexibility payment has been taken from a registered pension scheme.

You can find more information on how members can claim in-year repayments of tax deducted from their pension flexibility payments, including links to forms P50Z, P53Z and P55.

c. Pension flexibility - form P55

Following questions about form P55, we can confirm that there is nothing to stop an individual from using this form to claim an in-year repayment, regardless of whether they intend to take more than one pension flexibility payment in a year in respect of the same pension scheme.

Where an individual submits an in-year repayment claim using form P55, HMRC will process any repayments and issue a revised tax code to the pension scheme administrator to be applied against any further payments.

If we receive a subsequent P55 claim form in respect of the same individual in that tax year, this will be processed as normal taking into account any repayment that has already been made.

As part of our usual review process, we will ensure that the form reflects this in due course.

4. Certificate of residence

As you may be aware, the process for HMRC issuing certificates of residence for registered pension schemes changed from 4 August 2014.

This is a reminder that from 4 August 2014, to apply for a certification of residence you must fully complete and submit an APSS146E form even if you are also submitting an overseas tax form for us to stamp as an alternative to the certificate of residence that we issue.

If the APSS146E form is signed and submitted by a third party, HMRC must hold a completed APSS146C (third party authority) form and APSS146D (specimen signatures) form in place giving the third party authority to obtain the certificate of residence for the scheme.

However, if you have already completed forms APSS146A and B in respect of UK repayments and the authorised signatories are also dealing with the overseas repayments on behalf of the registered pension scheme, then you do not need to complete an APSS146C and D. You should advise us at the time of submitting the APSS146E that this is the case so that we don’t reject your application.

Please ensure that you fully complete the APSS146E to include the source of income and the relevant article number. A list of Tax Treaties is available.

You must ensure that all parts of the APSS146C, D and E forms are completed accurately as we will reject any application that is not fully completed or contains inaccuracies (for example if the Double Taxation Agreement Article numbers are incorrect).

You can find more information about the change to the process for HMRC issuing certificates of residence in Pension schemes newsletter 64.

5. Recognised Overseas Pension Schemes

a. Changes to the published list of overseas pension schemes

Following feedback from stakeholders we have reviewed the published List of Recognised Overseas Pension Schemes Notifications. Lists published after 6 April 2015 contain revised text to more accurately reflect the content of the list.

The published list is not a list of Qualifying Recognised Overseas Pension Schemes (QROPS) - it is, and always has been, a list of the overseas entities that have:

• notified HMRC they are a Recognised Overseas Pension Scheme (ROPS)
• made certain commitments with regard to reporting matters to HMRC
• been issued with a reference number from HMRC
• requested publication on HMRC’s website

This list is made available to reduce the administrative burdens on the overseas entity, UK registered pension schemes and members considering transferring their UK tax relieved pension savings to an overseas entity. For every proposed transfer, members and UK registered pension schemes need to satisfy themselves that the overseas receiving entity is a QROPS. One aspect of this is to ensure that the overseas entity has made the necessary notification and undertakings to HMRC that it is a ROPS.

The list of ROPS notifications provides a mechanism for checking that aspect. However, reviewing this list should not be the only check you carry out and rely upon when deciding whether or not to make a transfer. Further checks should be undertaken to satisfy yourselves that a transfer should be made.

b. Temporary suspension of the list of ROPS notifications

From 17 June 2015 the list of ROPS notifications will be temporarily suspended for a short period to allow the list to be reformatted. The ROPS notifications list will be available again from 1 July 2015. Please note that the reformatted list will look significantly different.

c. Qualifying Recognised Overseas Pension Scheme (QROPS) - APSS251 and APSS253

Following the pension flexibility changes which took effect from 6 April 2015, we have updated the forms APSS251- Recognised Overseas Pension Scheme notification and APSS253 - payments in respect of relevant members which relate to overseas pension schemes.

However please note that the QROPS Online System has not been updated, so if you want to notify us that your scheme is a recognised overseas pension scheme or report payments from qualifying recognised overseas pension schemes in respect of relevant members you should use the forms on GOV.UK.

Any APSS251 or APSS253 submitted through the QROPS Online System will not contain the relevant information following the pension flexibility changes and may be rejected as a result. This may also result in delays in the processing of requests.

6. Pension Schemes Online - guidance

We have seen an increase in calls to our Pensions Helpline from customers asking for help in using the Pension Schemes Online system. This is a reminder for pension scheme administrators that information about Pension Schemes Online is available.

You can find step-by-step instructions for using the Pension Schemes Online system in the online user guide.

You can also find additional guidance in the Pensions Tax Manual on what you are required to report to us.