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HMRC internal manual

Pensions Tax Manual

Transfers: transfers to a QROPS: member actions - information to be provided before the transfer

Glossary PTM000001
   

When a member asks for a transfer to a qualifying recognised overseas pension scheme (QROPS), the transferring scheme administrator or QROPS scheme manager may ask the member to fill in transfer request forms relating to their scheme.  In addition to these forms the legislation requires members to provide certain information when they are transferring from a registered pension scheme, QROPS or former QROPS.

Transfers from a registered pension scheme
Information required by regulations on transfer from a registered pension scheme
Required information on transfer from a QROPS or former QROPS

Transfers from a registered pension scheme

The scheme administrator should ask the member to provide the following information:

  • Information to enable the scheme administrator to work out if there is a lifetime allowance charge due to the proposed transfer. If the member does not provide enough information about their available lifetime allowance, the scheme administrator may assume that the whole transfer is liable to the lifetime allowance charge.
  • Certain information prescribed by regulations and a written and signed acknowledgment - see below for details. If this information is not provided before the transfer is made the transfer can be subject to the overseas transfer charge.

Information required by regulations on transfer from a registered pension scheme

Regulation 11BA Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

The member should provide the scheme administrator with certain information and a written acknowledgement within 60 days of requesting the transfer.

A transfer request is when a member has made a substantive request to the scheme administrator of their pension scheme on which the scheme administrator is required to take action in relation to the transfer. A casual enquiry is not a transfer request.

If the member does not meet this deadline, the member’s transfer request can lapse and the process can start again with a new transfer request from the member.

If the member does not give all the required information and the acknowledgement to the scheme administrator before the transfer is made, the transfer will be subject to the overseas transfer charge if it was requested on or after 9 March 2017.

When a member requests a transfer, the scheme administrator should tell them within 30 days what information and acknowledgment is required.

The scheme administrator needs this information to help them work out:

  • if the transfer will be an authorised payment and
  • whether or not the transfer will be subject to the overseas transfer charge

Form APSS 263 (available from Gov.uk) can be used to provide the prescribed information and written acknowledgement.  However the form of the acknowledgment is not prescribed and schemes are free to produce their own paperwork for this purpose.

The information that the member is required to provide falls into three broad categories:

  • information about themselves
  • details of the receiving QROPS
  • information relating to potential liability to the overseas transfer charge.

Member details

The member must give the scheme administrator the following information about themselves:

  • Name and date of birth;
  • National Insurance number or, where applicable, written confirmation that the member does not qualify for a National Insurance number;
  • Principal residential address and, if that address is not in the United Kingdom, the member’s last principal residential address in the UK;
  • If the member is no longer UK resident the date they ceased to be resident in the UK (not required for transfers requested before 12 August 2013); and
  • Telephone number, if any, which the member provides for use by the scheme administrator or HMRC in relation to the scheme.

QROPS details

The member must give the scheme administrator the following information about the QROPS to which the transfer is to be made:

  • The name and address of the QROPS;
  • The country or territory under the law of which the QROPS is established and regulated;
  • The reference number given to the scheme by HMRC, if known.

Overseas transfer charge details

The following information needs to be given to the scheme administrator to enable them to decide if the transfer is taxable and to enable the scheme administrator to comply with the requirement imposed on them to provide information about the transfer.

Whether the member knows for certain that the transfer would not be subject to the overseas transfer charge because the QROPS is

  • set up by an international organisation (see PTM112200 for the definition of an international organisation as it doesn’t simply mean an organisation that operates in more than one country)
  • an overseas public service scheme (see PTM102300 for definition) or
  • an occupational pension scheme

and in all cases at the time of the transfer the member is an employee of an employer participating in the QROPS.

If the member does know for certain that the transfer will not be chargeable for this reason they must give the following details in respect of the QROPS scheme employer:

  • their employer’s name and address
  • their job title as an employee
  • the date their employment started with that scheme employer, and
  • if they know it, their tax reference for that employment.  This means the tax reference as an employee, so the overseas equivalent of a PAYE reference.

The member must also tell the scheme administrator the section of Finance Act 2004 (section 244D, 244E or 244F) under which the transfer is not subject to the overseas transfer charge, if they know this.

Prescribed member’s written acknowledgement

The member must sign a written statement to confirm they acknowledge that they are aware that a transfer other than a recognised transfer to a QROPS of sums and assets held for the purposes of, or representing accrued rights under, an arrangement under a registered pension scheme:

  • gives rise to a liability under section 208 (unauthorised payments charge), and
  • may give rise to a liability under section 209 (unauthorised payments surcharge).

The member must also acknowledge in writing that they are aware:

  • that a recognised transfer to a QROPS may give rise to a liability to the overseas transfer charge, and
  • of the circumstances in which liability arises, liability is excluded from the outset, and liability is excluded only if conditions continue to be met over a period of time.

Required information on transfer from a QROPS or former QROPS

Regulation 3AE The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

The member should give the scheme manager certain information and statements if the funds they want to transfer include a ring-fenced transfer fund (see PTM113230).

However they don’t need to do this if:

  • the transfer will take place after the relevant period (see PTM102200) for the ring-fenced transfer fund has expired,
  • the ring-fenced transfer fund was created from a transfer that was requested before 9 March 2017 (see PTM102300), or
  • the overseas transfer charge was paid in respect of the transferred fund and has not become repayable

The scheme manager should tell the member if they are required to provide information and what information and statements are required within 30 days of the member requesting a transfer out of the scheme.

A transfer request is when a member has made a substantive request to the scheme manager on which they are required to take action in relation to the transfer. A casual enquiry is not a transfer request.

Where the member is required to provide information and statements, they must do so within 60 days of their transfer request.

If the member does not meet this deadline, the member’s transfer request can lapse and the process can start again with a new transfer request from the member.

Failure to provide the required information and statements to the scheme manager before the transfer could result in the transfer being subject to the overseas transfer charge.

The information required from the member is:

  • their name and date of birth
  • their National Insurance number or, where applicable, confirmation in writing that they do not qualify for a National Insurance number
  • their principal residential address and, if they are not resident for tax purposes in the UK, the date they ceased to be UK tax resident
  • the name and address of the receiving QROPS, the country in which it is established and regulated, and the reference number given to the QROPS by HMRC

To enable the scheme manager to decide if the transfer is subject to the overseas transfer charge, the member also needs to tell the scheme manager whether they know for certain that the transfer would not be subject to the overseas transfer charge because the QROPS is:

  • set up by an international organisation (see PTM112200 for the definition of an international organisation as it doesn’t simply mean an organisation that operates in more than one country);
  • an overseas public service scheme (see PTM102300 for definition); or
  • an occupational pension scheme

and in all cases, at the time of the proposed transfer they are an employee of an employer participating in the receiving QROPS.

If the member does know for certain that the transfer will not be chargeable for this reason they must give the following details in respect of the QROPS scheme employer:

  • their employer’s name and address
  • their job title as an employee
  • the date their employment started with that scheme employer, and
  • if they know it, their tax reference for that employment.  This means the tax reference as an employee, so the overseas equivalent of a PAYE reference.

The member must also tell the scheme administrator the section of Finance Act 2004 (section 244D, 244E or 244F) under which the transfer is not subject to the overseas transfer charge, if they know this.  (PTM102300 tells you which section of legislation relates to which exclusion condition.)

The member must also give the scheme manager a written statement to confirm that they are aware:

  • that the transfer to a QROPS may give rise to a liability to the overseas transfer charge, and
  • of the circumstances in which liability arises, liability is excluded from the outset, and liability is excluded only if conditions continue to be met over a period of time.

Form APSS 255 (available from Gov.uk) can be used to provide the prescribed information and written acknowledgement.  However the form of the acknowledgment is not prescribed and schemes are free to produce their own paperwork for this purpose.