HMRC faces criticism over continuing delay for Gibraltar Qrops
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London & Colonial has complained that HM Revenue & Customs is wasting time and effort in continuing to delay approval of qualified recognised overseas pension schemes in Gibraltar.
HMRC has been in correspondence with Gibraltar Qrops’ providers since the spring after raising compliance questions about UK Qrops’ regulations.
Gibraltar pension trustees have halted UK transfers until the issue had been resolved.
L&C chief executive Ken Wrench says: “It is very frustrating that HMRC will not meet with anybody or explain their objectives. HMRC is asserting the tax basis for Gibraltar residents (under which a tax rate of 0 per cent is currently applied to pension income for the over 60s) is inconsistent with the Qrops regulations because it is not part of a progressive tax system. If they intend to maintain that assertion they should state their authority for such an interpretation - our legal advisers do not believe that such an authority exists.
An HMRC spokesman says: “HMRC has an ongoing duty to review and consider whether the conditions to be a Qrops are met by any schemes that have applied to be Qrops and will continue to do so.”
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