Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Pensions Tax Manual

From
HM Revenue & Customs
Updated
, see all updates

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
Changes to information supplied
Other information that a QROPS may need to provide to HMRC under SI 2006/208
Information to be provided about the member flexibly accessing their pension savings
Information to be provided on transfer to a QROPS 
Consequences of failure to make reports
Information notices under Schedule 36 Finance Act 2008

Payment information

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.

Top of page

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 is neither UK resident nor resident at any point earlier in the tax year or in any of the previous five tax years.

Top of page

Other information that a QROPS may need to provide to HMRC under SI 2006/208

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

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

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 can be found at PTM112700 - Other information that a QROPS may need to provide to HMRC.

This information must be provided:

  • within 90 days beginning on the day the notice is given by HMRC, or
  • by such other time as may be agreed between HMRC and the QROPS.

Top of page

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

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.

Top of page

Information to be provided 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

If a transfer to a QROPS includes part or all of a member’s relevant transfer fund or UK tax-relieved fund (see PTM113230 for definitions) the transferring scheme manager must provide the receiving scheme manager with the following information:

  • the value of the member’s relevant transfer fund included in the transfer
  • the value of the member’s UK tax-relieved fund included in the transfer, and
  • if the transfer includes part or all of the member’s relevant transfer fund, and the transferring scheme is aware of any recognised transfer from which the transfer derived, the fact that there was a recognised transfer and where the scheme manager knows it the date of the recognised transfer.

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

Top of page

Consequences of failure to make reports

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.

Top of page

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 (external users please see http://www.hmrc.gov.uk/manuals/chmanual/CH26000.htm).