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HMRC internal manual

Pensions Tax Manual

International: qualifying recognised overseas pension schemes (QROPS): Reports to be made to HMRC automatically

Glossary PTM000001
   

Section 169(2)(b) - (c) and (4) Finance Act 2004

The scheme manager of a qualifying recognised overseas pension scheme (QROPS), has undertaken to notify HMRC if the scheme ever ceases to be a recognised overseas pension scheme (ROPS), and to comply with any ‘prescribed information requirements’.

This page of guidance explains the reports that must be made to HMRC automatically without a request from HMRC.

PTM112720 provides guidance on the information to be provided in response to a request from HMRC.

PTM112750 provides guidance on the information scheme managers should give to members and other pension schemes.

If the scheme manager fails to make the reports within the required time, or provides inaccurate information, HMRC can exclude the scheme from being a QROPS - see PTM112500.

Apart from reporting that their scheme has ceased to be a QROPS, these reporting requirements will also apply to the scheme manager of a scheme that became a former QROPS on or after 14 October 2013 - see PTM112800.

Reporting payments made by the scheme
Report the change of a member’s address
Reporting liability to the overseas transfer charge due to a change in circumstances
Tell HMRC that the overseas transfer charge is repayable
Re-notifying ROPS status
Changes to information supplied
Reporting ceasing to be a QROPS
What happens if the scheme manager does not provide information

Reporting payments made by the scheme

Regulation 3(2), (3), (4) to (5) The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208

The scheme manager must tell HMRC when they make a payment, including transactions treated as a payment, in respect of a member who has a ‘relevant transfer fund’or ‘ring-fenced transfer fund’.  PTM113230 provides guidance on the meaning of these terms.  Broadly this means scheme managers must report payments made to or in respect of a member who has transferred funds into the scheme, either directly or indirectly, from either

  • a registered pension scheme, or
  • another overseas pension scheme that is a relevant non-UK scheme.

PTM113210 provides guidance on the meaning of the term ‘relevant non-UK scheme’.

Payments include not just pension and lump sum payments to the member, but also any payment in respect of the member such as a transfer of their pension rights out of the scheme.

The scheme manager must also tell HMRC when they are treated by the tax law as making a payment in respect of a member with a relevant transfer fund or ring-fenced transfer fund under the following provisions:

  • Sections 172 to 172D - see PTM133200 to PTM133600,
  • Section 173 - see guidance starting at PTM133900,
  • Section 174 - see PTM133700,
  • Section 174A - See PTM121000 for an introduction to the tax charge on taxable property
  • Paragraph 3A schedule 29 - see guidance starting at PTM133800,
  • Paragraph 2A schedule 28 - see PTM062340.

Reports must be made to HMRC within 90 days starting with the date of the payment (or deemed payment).  In limited circumstances, HMRC may agree a later date with the scheme manager.

Where the payment is part of a stream of pension payments, it is only necessary to send HMRC a notification of the first such payment any individual receives in respect of that particular pension stream. If the person starts to receive a second or subsequent pension stream, because they have rights to more than one pension under the scheme, then the first pension payment of each pension stream must be reported.

Where a non-pension payment (such as a lump sum or transfer) is made, a notification is needed in respect of each payment even if the payment of a pension has been reported already.

Details to report

Regulation 3(2) The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208

HMRC provides forms APSS253 and APSS253 (Insert) for the purposes of reporting these payments. These forms are available on Gov.uk.

The payment report must include the following information:

Member information

The member’s name.

The member’s date of birth.

The member’s National Insurance number or, if they don’t have one, their UTR (unique tax reference) with HMRC if they have one. If the member has neither a National Insurance number nor a UTR, and they are not UK resident, the scheme manager should provide any reference number allocated by the tax authority of the country in which the member is tax resident.

The member’s principal residential address and contact details.

If the member isn’t tax resident in the UK the date they ceased to be resident for tax purposes in the UK.

Scheme information

The name, address and contact details of the scheme making the report.

The name, address and contact details of the scheme manager.

Information about the payment

The date of the payment.

The nature of the payment.

The amount of the payment

If as a result of the payment the member has no remaining relevant transfer fund or ring-fenced transfer funds under the scheme, a statement to that effect.

If the payment is made to a pension scheme:

  • the name and address of the pension scheme that received the payment
  • if that scheme is a registered pension scheme, its Pension Scheme Tax Reference number (PSTR).

If the payment is made to a QROPS, the following information must also be provided:

  • the reference number allocated by HMRC to the QROPS receiving the transfer
  • the total amount of the member’s relevant transfer fund and ring fenced transfer fund(s) remaining under the scheme after the transfer has been made (see PTM113230)
  • whether or not the overseas transfer charge arises on the transfer payment (see PTM102200)
  • if the overseas transfer charge arises, the ‘transferred value’ and the amount of the overseas transfer charge the scheme manager deducted before making the transfer (see PTM102500)
  • if the overseas transfer charge does not arise, the reason why the tax charge did not arise on the transfer (see PTM102300).

If the payment is made to an individual after the member’s death the following information is needed:

  • the recipient’s name, principal residential address and date of birth
  • the recipient’s National Insurance number or, if they don’t have one, their UTR (unique tax reference) with HMRC if they have one. If they have neither a National Insurance number nor a UTR, and they are not UK resident, the scheme manager should provide any reference number allocated by the tax authority of the country in which the individual is tax resident.

If the payment is made after the member’s death to a person who is not an individual, that person’s name and address should be included in the payment report. 

When payments do not need to be reported

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

No payment report to HMRC is needed in respect of a payment if the member payment provisions (see PTM113210) no longer apply to the relevant member, and the payment is made more than 10 years after the following dates:

  • if the payment is not made in respect of any of the member’s ring-fenced transfer funds, the date of the transfer to the scheme that created that relevant transfer fund,
  • if the payment is in respect of one or more of the member’s ring-fenced transfer funds, the latest key date of the ring-fenced transfer funds.

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Report the change of a member’s address

Regulation 3(2C) The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006 SI - 2006/208

The scheme manager needs to tell HMRC when the member changes their residential address within the relevant period (see PTM102200) for a recognised transfer into the scheme or an onward transfer from the scheme.  They need to do this if the new residential address is neither:

  • in the same country or territory as that in which their scheme is established, nor
  • in a country within the EEA.

The notification should be made to HMRC within three months of the scheme manager becoming aware of the change of the member’s residential address.

Reporting liability to the overseas transfer charge due to a change in circumstances

Regulation 3(2B) and 3(3A) The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006 SI - 2006/208

Scheme managers are required to tell HMRC if their scheme received a recognised transfer or onward transfer that was not subject to the overseas transfer charge and, due to a change of circumstances, the tax charge is now due.

They must do this within 90 days of being told of the change of residence that results in the overseas transfer charge now being due. 

PTM102400 provides guidance on the information that must be reported to HMRC.

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Tell HMRC that the overseas transfer charge is repayable

Regulation 3(2B) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

The scheme manager must tell HMRC when the overseas transfer change becomes repayable due to a change in circumstances.

They must do this within 90 days of being told of the event that results in the overseas transfer charge now being repayable. 

Go to PTM102600 for further details of this reporting requirement.

Re-notifying ROPS status

Regulation 3(1A) - (1D) The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006 SI - 2006/208

If a scheme wishes to be a QROPS its scheme manager must re-notify the scheme’s recognised overseas pension scheme (ROPS) status to HMRC.  This will normally be once every five years.  Go to PTM112600 for guidance on the re-notification requirements and process.

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Changes to information supplied

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

If at any time after any information has been supplied to HMRC, it becomes apparent to the scheme manager that:

  • there is a material change affecting the information, or
  • that the information is incomplete or contains a material inaccuracy

they must provide HMRC with details of the change, the complete information or correction of the inaccuracy, as appropriate. The scheme manager can use form APSS 251A to provide details of the change.

The scheme manager must give the information to HMRC:

  • within 30 days beginning on the day that the change occurred or the scheme manager became aware of the lack of completeness or inaccuracy, or
  • by such later date that may be agreed between HMRC and the scheme manager.

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Reporting ceasing to be a QROPS

Regulation 3B The Pension Schemes (Information Requirements - Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208

A QROPS scheme manager must notify HMRC that their scheme has ceased to be a QROPS within 30 days, beginning with the date that the scheme ceased to be a QROPS. The scheme manager must give HMRC all the following information as part of the notification:

  • the scheme’s name and address
  • the date of cessation and the reason the scheme ceased to be a QROPS
  • the value at the cessation date of the ‘relevant transferred sums and assets’ for each ‘relevant transfer fund’ or ‘ring-fenced transfer fund’ under the scheme
  • For each member who has a relevant transfer fund under the scheme:
    • name and date of birth,
    • principal residential address, and
    • National Insurance number, or if they don’t have one, their UTR (unique tax reference) with HMRC if they have one. If the member has neither a National Insurance number nor a UTR and is no longer UK tax resident the scheme manager should provide any reference number allocated by the tax authority of the country in which the member is tax resident.

After a scheme has ceased to be a QROPS the scheme manager must still make certain reports to HMRC in accordance with the guidance at PTM112800.

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What happens if the scheme manager does not provide information

If the scheme manager fails to make the reports within the required time HMRC can exclude the scheme from being a QROPS - see PTM112500.