Jump to content

UK Pensions/QROPS 5 year+ rule to become 10 year+ rule


Recommended Posts

HMRC are consulting on changes to the time period that a member payment charge applies for unauthorised payments from Relevant Non UK Schemes (RNUKS - this would include an Australian QROPS (former QROPS)) which if approved will come into effect from April 2017.

 

Without doubt great care should be taken when considering transferring or withdrawing benefits from a QROPS (former QROPS).

 

Here are the proposals:

 

Currently UK tax can arise on payments, including deemed payments, made from a foreign pension scheme that has had UK tax relief (a relevant non-UK scheme) under the following provisions:

 

· the member payment charges under Schedule 34 Finance Act 2004

 

· the taxable property charges under Schedule 34 Finance Act 2004

 

The member payment charges

 

Certain payments from a relevant non-UK scheme (RNUKS) are taxable if the member is UK resident when the payment is made or has been UK resident in any one of the previous five tax years.

 

Guidance on the definition of an RNUKS and when UK tax charges apply can be found in the Pensions Tax Manual at PTM113210.

 

The time limit during which the member payment provisions apply will be extended so that the member payment charges will apply if, at the time of the payment, the member is UK resident or has been resident in any one of the previous 10 tax years.

 

The extended time limit will apply to:

 

· transfers made from a registered pension scheme on or after 6 April 2017

 

· pension inputs into an overseas scheme on or after 6 April 2017 that have benefitted from UK tax relief.

Edited by Andrew from Vista Financial
Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Use