Overseas pensions: stop being a QROPS
How qualifying recognised overseas pension schemes (QROPS) can lose their QROPS status and what former QROPS need to report.
If you manage a QROPS you must tell HM Revenue and Customs (HMRC) when you stop being a QROPS.
Existing QROPS will need to tell HMRC that they’ll operate the overseas transfer charge by 13 April 2017 or they’ll lose their QROPS status.
Former QROPS need to keep reporting information to HMRC about the payments they make or they’ll have to pay an initial penalty of £300 and a daily penalty of up to £60 until they provide this information.
When you need to tell HMRC
You need to tell HMRC:
- if you no longer want your scheme to be a QROPS
- when your scheme stops meeting the QROPS requirements
Use form APSS251B to:
- tell HMRC that you’ve stopped being a QROPS
- report details about the pension savings held by your scheme
You’ll also need to report details about the pension savings in your scheme if your QROPS status is removed by HMRC. This will happen if:
- the scheme doesn’t have a manager
- you give false or incorrect information to HMRC
- you don’t report the required information to HMRC
- you don’t pay the overseas transfer charge when due
Effects of losing your QROPS status
Your scheme won’t be able to receive transfers from UK registered pension schemes or other QROPS free from UK tax. Individuals who want to transfer their pension savings into your scheme will have to pay an unauthorised payment charge of at least 40%.
Your scheme members won’t have to pay an unauthorised payments charge for their transfers if you received it before your scheme lost its QROPS status.
What you need to report
You have to tell HMRC within 30 days if you find that information you previously provided has changed, was incomplete or inaccurate. You can use form APSS251A to do this.
Former QROPS also need to tell HMRC within 90 days:
- when you make a payment from a pension
- if your scheme transfers savings to other schemes
- whether the transfer is liable to the overseas transfer charge
If you are liable to the overseas transfer charge you must pay it to HMRC within 90 days of the day that HMRC tells you how to pay it.
Former QROPS managers also have to tell their members when they have flexibly accessed their pension.