PTM160600 - Information and administration: essential principles: information requirements for qualifying recognised overseas pension schemes (QROPS) and former QROPS
Glossary |
Reporting requirements for qualifying recognised overseas pension schemes (QROPS)
Reporting requirements for former QROPS
Reporting requirements for qualifying recognised overseas pension schemes (QROPS)
When a scheme manager notifies HMRC that their scheme meets the conditions to be a recognised overseas pension scheme and that they want the scheme to be a QROPS they undertake to comply with prescribed information requirements. If a scheme manager fails to comply with these information requirements HMRC can remove the QROPS status from their pension scheme (exclusion from being a QROPS, see PTM112500).
The information and reporting requirements for QROPS and their scheme managers are set out in broad terms below. Full guidance on most of the reporting requirement for QROPS and former QROPS is in the section of the guidance covering the conditions to be a QROPS starting at PTM112000.
Requirement to re-notify
Regulation 3(1A) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208
Full guidance is at PTM112600.
The QROPS scheme manager must re-notify HMRC (broadly every five years) that the scheme continues to meet the conditions to be a recognised overseas pension scheme.
Requirement to report changes to HMRC
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
Full guidance is at PTM112700.
The scheme manager must notify HMRC of any changes to the details of the scheme or the scheme manager and correct any inaccurate information previously supplied to HMRC. This must be done within 30 days beginning with the date of the relevant change or when the scheme manager became aware that the information previously given to HMRC was incorrect.
Requirement to tell HMRC that the scheme has ceased to be a QROPS
Regulation 3B The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208
Full guidance is at PTM112700.
The scheme manager must provide HMRC with certain information within 30 days, beginning with the day on which the scheme ceased to be a QROPS. After a scheme has ceased to be a QROPS the scheme manager will still be required to report certain events and changes to HMRC under the rules for former QROPS - see ‘Reporting requirements for former QROPS’ below.
Requirement to report payments made by the scheme to HMRC
Regulation 3(2) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208
Full guidance is at PTM112700.
The scheme manager must report certain payments made to or in respect of a member who has transferred in pension rights that have benefitted from UK tax relief. The information must be provided to HMRC within 90 days of the payment being made.
Providing information when a member has flexibly accessed their pension savings
Regulations 3AA & 3AC The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208
Scheme managers must provide a member with a flexible access statement if:
- on or after 6 April 2015 they pay the member benefits in a form equivalent to flexi-access drawdown or an uncrystallised funds pension lump sum or
- before 6 April 2016 the member had taken the equivalent of flexible drawdown under the scheme.
Guidance on this requirement is at PTM166300.
If a transfer is made in respect of a member who the scheme manager has reason to believe has flexibly accessed their pension right the scheme manager must pass on information about this to the receiving scheme. Guidance on this requirement is at PTM166700.
Requirement to tell members the information they need to give the scheme manager before a transfer to another QROPS
Regulation 3AE(6) 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 wants to make an onward transfer to another QROPS they may need to give information to the transferring scheme manager before the transfer. The scheme manager is required to tell the member if they member need to provide information and what information and statements are required – see PTM103100.
Requirement to provide information to scheme managers when making a transfer to another 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
Full guidance is at PTM103150.
When a transfer is made to another QROPS the transferring scheme manager must give the receiving scheme manager certain information about the transferred funds.
Requirement to report change of member’s address to HMRC
Full guidance is at PTM112700.
Scheme managers are required to tell HMRC if they become aware that a member has changes their address in the period up to six years after the transfer.
Requirement to report liability to an overseas transfer charge due to a change of 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
Full guidance is at PTM102400.
Scheme managers are required to tell HMRC if due to a change of circumstances an overseas transfer charge is now due within 90 days of being told of the event causing the tax charge to arise.
Requirement to tell HMRC that an overseas transfer charge is repayable
Full guidance is at PTM102600.
Scheme managers are required to tell HMRC if due to a change of circumstances an overseas transfer charge under section 244AC becomes repayable within 90 days of being told of the event causing the tax charge to be repayable.
Requirement to respond to an information notice
Regulations 3(1)(g) and 3A The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208
Schedule 36 Finance Act 2008
HMRC can issue an information notice to a QROPS scheme manager requesting certain information. HMRC has three powers it can use to request information about the scheme. The information that HMRC can ask for and the consequences of not responding may vary depending on the power used.
HMRC may issue an information notice using its general powers at Schedule 36 Finance Act 2008 to check on the tax position of one or more taxpayers. Guidance on information notices issued under this power is at PTM169200.
HMRC also has specific powers to ask for
- information in respect of a transfer of sums or assets that have at any time been held for the purposes of or represented rights under a registered pension scheme, and
- information or evidence about the scheme meets the conditions to be a recognised overseas pension scheme (ROPS).
Guidance on information notices issued under these powers is at PTM112720.
Giving members information after transfer to another 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
PTM103150 provides full guidance on these requirements.
When an onward transfer is made to another QROPS the scheme manager must give the member a transfer notice.
Scheme managers must also give information to members if an overseas transfer charge under section 244AC becomes payable or repayable due to a change of circumstances.
Reporting requirements for former QROPS
A scheme manager of a former QROPS may still be required to provide certain information if the scheme ceased to be a QROPS on or after 14 October 2013.
Requirement to report payments made by the scheme to HMRC
Regulation 3(2) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 - SI 2006/208
Full guidance is at PTM112800.
The scheme manager of a former QROPS must report certain payments to HMRC just as a QROPS does. The information must be provided to HMRC within 90 days of the payment being made.
Requirement to report changes to HMRC
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
Full guidance is at PTM112800.
The scheme manager of a former QROPS must continue to tell HMRC about any changes to the details of the scheme or the scheme manager and correct any inaccurate information previously supplied to HMRC.
Providing information when a member has flexibly accessed 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
Former QROPS scheme managers must give members a flexible access statement in the same circumstances as a QROPS. Guidance on this requirement is at PTM166300.
If a transfer is made in respect of a member who the scheme manager has reason to believe has flexibly accessed their pension right the scheme manager must pass on information about this to the receiving scheme. Guidance on this requirement is at PTM166700.
Requirement to tell members the information they need to give the scheme manager before a transfer to another QROPS
Regulation 3AE(6) 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 wants to make an onward transfer to another QROPS they may need to give information to the transferring scheme manager before the transfer. The scheme manager is required to tell the member if they member need to provide information and what information and statements are required – see PTM103100.
Requirement to provide information to scheme managers when making a 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
Full guidance is at PTM103150.
When a transfer is made to a QROPS the transferring scheme manager must give the receiving scheme manager certain information about the transferred funds.
Giving members information after transfer to another 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
PTM103150 provides full guidance on these requirements.
When an onward transfer is made to another QROPS the scheme manger must give the member a transfer notice.
Scheme managers must also give information to members if an overseas transfer charge becomes payable or repayable due to a change of circumstances
Requirement to report change of member’s address to HMRC
Full guidance is at PTM103150.
Scheme managers are required to tell HMRC if they become aware that a member has changes their address in the period up to six years after the transfer.
Requirement to report liability to an overseas transfer charge due to a change of 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
Full guidance is at PTM102400.
Scheme managers are required to tell HMRC if due to a change of circumstances the overseas transfer charge is now due within 90 days of being told of the event causing the tax charge to arise.
Requirement to tell HMRC that an overseas transfer charge is repayable
Full guidance is at PTM102600.
Scheme managers are required to tell HMRC if due to a change of circumstances an overseas transfer charge under section 244AC becomes repayable within 90 days of being told of the event causing the tax charge to be repayable.
Requirement to respond to an information notice
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
Schedule 36 Finance Act 2008
Even though a scheme is no longer a QROPS HMRC can still issue an information notice to the scheme manager requiring them to provide information or documents.
Where the information notice is issued under the specific powers HMRC described at PTM112800 it can only be issued to a scheme that ceased to be a QROPS on or after 14 October 2013.
However an information notice issued under the general powers at Schedule 36 Finance Act 2008 (see PTM169200) can be issued to any former QROPS regardless of when it ceased to be a QROPS.
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.