QROPS in 2012

[davidgoodall]

2012 is going to bring some momentous changes to the QROPS arrangements and rules. The draft regulations relating to QROPS published in late 2011 have the potential to completely change the QROPS landscape. It is becoming accepted that there is likely to be little by way of alteration to the draft regulations and QROPS jurisdictions are looking to adapt with effect from the 6 April 2012 implementation date.

Already the main QROPS jurisdictions are adjusting their plans to suit the new arrangements

Please follow for more detail : Financial Pages in Spain: QROPS in 2012

As soon as the new rules and regulations are published, I shall post an update


davidgoodall

[QROPS]

There is no doubt that QROPS will change after April 6, however Qrops can still be a very good alternative to UK pensions

[QROPS]

• Summary of what the changes are – firm up the tests to be an overseas pension scheme to make the rules work as always originally intended. – new member information and signed acknowledgement to be provided to the RPS pre transfer out of RPS – revised timeframe for an RPS to report a transfer to a QROPS as well as additional information to be provided and a switch to reporting via a paper form. -changes to the period in which a QROPS has to report information on payments to HMRC
–payments by QROPS to be reported within 60 days on new paper form
• When changes take effect – the changes come into effect on 06 April 2012 although there are a couple of transitional aspects The key changes for affected parties to be aware of are:
• New overseas schemes seeking to attract transfers of UK tax-relieved funds:
-A revised form APSS251 is available for schemes to notify HMRC that they meet the requirements to be a recognised overseas pension scheme. This information will be required for any notifications dealt with by HMRC after 5 April 2012.
-The new reporting process will be applicable to any payments made or treated as made by these schemes.
• Existing overseas schemes that have already notified HMRC that they meet the requirements to be a qualifying recognised overseas pension scheme.
-These schemes will need to ensure that they meet Conditions 3 and 4 of the requirements to be considered an overseas pension scheme. Any scheme that is established in New Zealand will also need to look at the revision that has been made to the definition of a recognised overseas pension scheme.
-There is a new reporting requirement for a scheme that ceases to be a QROPS after 5 April 2012.
-The revised reporting requirements are applicable to any payments made from a QROPS after 5 April 2012.
-There is a new obligation to notify HMRC of any material changes to information that has been provided to HMRC previously in relation to the information requirements.
• Registered Pension Schemes
-Need member information before transfer. Need to report transfer within 30 days on APSS262. Transfer made on or before 05.April 2012 report online on ‘old’ basis.