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HMRC internal manual

Pensions Tax Manual

International: qualifying recognised overseas pension schemes (QROPS): reporting by former QROPS

Glossary PTM000001
   

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

A qualifying recognised overseas pension scheme (QROPS) that lost or gave up its status on or after 14 October 2013 must still provide certain information to HMRC when certain events occur.

Regardless of when a scheme ceased to be a QROPS HMRC can issue an information notice either to the scheme manager or to anyone else using its powers at Schedule 36 Finance Act 2008.

Payment information - reports to HMRC
Information to HMRC about transfers received 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
Information to be provided to scheme managers on transfer to a QROPS
Information to be provided to members following a transfer to a QROPS
Changes to information supplied
Information to be provided about the member flexibly accessing their pension savings
Consequences of failure to make reports
Information notices under Schedule 36 Finance Act 2008

Payment information - reports to HMRC

Regulation 3(2) to (7) the Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208

A scheme that ceased to be a QROPS on or after 14 October 2013 still needs to report payments made by the scheme just as if the scheme was still a QROPS. Reports can be made using for APSS 253.

Full details of the reporting requirements can be found at PTM112700.

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Information to HMRC about transfers received by the scheme

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

HMRC can require the scheme manager of a former QROPS to provide information if that scheme received a transfer whilst the scheme still had QROPS status and the transfer came from:

  • a registered pension scheme, or
  • another QROPS where the transfer included rights that originated from a registered pension scheme.

Full details of the information that can be requested under this reporting requirement, and when it must be provided can be found at PTM112720.

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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.

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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 of former QROPS are required to tell HMRC if, whilst their scheme was a QROPS, it 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.

PTM102400 provides guidance on the information that must be reported to HMRC, and the deadline for making the report.

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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 charge becomes repayable due to a change in circumstances within 90 days of being told of the event causing the charge to be repayable.

Go to PTM102600 for further details of this reporting requirement.

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Information to be provided to scheme managers on transfer to a QROPS

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

When a QROPS makes a transfer to another QROPS that includes all or part of a member’s:

  • relevant transfer fund
  • UK tax-relieved fund, or
  • one or more ring-fenced transfer funds

the scheme manager must give a transfer statement to the receiving QROPS scheme manager.

This transfer statement must be provided before the end of 91 days beginning with the date of the transfer to the receiving QROPS.

PTM103150 provides full guidance on the content of these transfer statements.

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Information to be provided to members following a transfer to a QROPS

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

Where an onward transfer is made during the relevant period (see PTM102200) the scheme manager must give the member a transfer notice within 90 days of the transfer.  The information to be included in the transfer notice depends on whether or not any part of the transfer was subject to the overseas transfer charge.

PTM103150 provides full guidance on the content of the transfer notice to the member.

The scheme manager of a former QROPS must also give information to a member if:

  • the overseas transfer charge arises due to a change of circumstances after the transfer (see PTM102400), or
  • due to a change of circumstance the overseas transfer charge becomes repayable (see PTM102600).

PTM103150 provides further guidance on these requirements.

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

This provision only applies to schemes that ceased to be a QROPS on or after 14 October 2013.

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.

There is also a cut-off point from which scheme managers of former QROPS no longer need to report changes to information. Scheme managers of former QROPS won’t need to report changes to information if:

  • there are no relevant transfer funds under the scheme (see PTM113210 for the meaning of relevant transfer fund), or
  • the transfer to which the relevant information correction/change relates was made more than 10 years ago and the member payment provisions do not apply to the individual member.

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Information to be provided about the member flexibly accessing their pension savings

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

When a member flexibly accesses benefits on or after 6 April 2015 they become subject to the money purchase annual allowance rules (see PTM056510). This includes when a member flexibly accesses their benefits under a former QROPS.

Scheme managers of a former QROPS are required to provide information to members and to other scheme managers or scheme administrators of registered pension schemes. PTM166300 and PTM166700 provide guidance on these information requirements.

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Consequences of failure to make reports

Regulation 5 The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208

If the scheme manager of a former QROPS fails to make the reports within the required time penalties may be due. Penalties will apply as if the information and required reporting time had been specified in an information notice issued under Schedule 36 Finance Act 2008.

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Information notices under Schedule 36 Finance Act 2008

Regardless of when a scheme ceased to be a QROPS HMRC can ask the scheme manager to provide information or produce documents using the powers at Schedule 36 Finance Act 2008. PTM169000 gives more information about these powers. If the scheme manager does not comply with an information notice penalties will be due. Guidance on when penalties may be charged, and the amounts due for failing to comply with an information notice can be found in the Compliance Handbook starting at CH26000.