HMRC delays on Gibraltar Qrops issue unacceptable and peverse, says L&C
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London & Colonial says HM Revenue & Customs is wasting time and effort to no useful purpose in continuing to delay acceptance that Gibraltar is an acceptable Qrops jurisdiction.
HMRC has been in correspondence with Gibraltar Qrops providers since Spring raising various issues with regard to compliance with the UK’s Qrops regulations.
Money Marketing reported in September that Gibraltar pension trustees had halted UK transfers to overseas pension schemes until the issue had been resolved.
The uncertainty centres on the basis on which Gibraltar residents are taxed on their pension income.
L&C says HMRC have failed to explain why, from a policy point of view, this is of t interest or consequence to the UK in general or the Treasury.
It says business is being held up and prospective scheme members are being denied the options and benefits which it believes they are entitled for no good reason.
Chief executive Ken Wrench says: “It is very frustrating that on this matter HMRC will not meet with anybody or explain let alone discuss their objectives.
“One wonders if there is some hidden agenda. Whatever tax is or is not paid by Gibraltar residents will make no difference to the tax paid to HMRC by QROPS members who are UK resident. If it is simply their interpretation of the letter of the regulations then it is about time either that they agree that a favourable interpretation is acceptable or that the regulations were changed.”
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