CyprusLiving

HM Revenue & Customs (HMRC) has updated its list of qualifying recognised oversea pension schemes (QROPS) leaving just a single Australian scheme on its books.

HMRC's list, which had been temporarily suspended since 17 June, was today brought back online.

Following recent changes to UK pension legislation the revenue wrote to overseas pension schemes asking them to confirm whether they continue to meet the requirements to be a QROPS.

Sackers partner Claire Carey explained: "The recent legislative changes to the rules governing QROPS mean that benefits cannot generally be paid before age 55, unless the transferring member is retiring due to ill-health.

"This so-called ‘pension age test has been causing difficulties for pension schemes in certain jurisdictions, most notably Australia, where benefits may be accessed at an earlier age due to financial hardship."

Carey said it was hard to judge how many schemes had been wiped off today's updated list but a "fairly lengthy list of Australian schemes has been reduced to a solitary entry".

She also said HMRC has changed its terminology for the QROPS list, removing the word "qualifying."

"Due to a shift in emphasis by HMRC, since 15 April 2015, the schemes on the list are no longer described as ‘qualifying'.

"HMRC now states that it ‘can't guarantee these are [Recognised Overseas Schemes] or that any transfers to them will be free of UK tax. It is your responsibility to find out if you have to pay tax on any transfer of pension savings'."

She said pension scheme trustees faced with a transfer request to a QROPS should carry out reasonable due diligence to satisfy themselves that the transfer will be a recognised transfer, and that it will not give rise to "adverse tax consequences for the member or the scheme"