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Equity Trust loses court battle over Qrops status

Equity Trust, the trustee of the Singapore-based Panthera Recognised Overseas Self-Invested International Pension, has lost its battle with HM Revenue & Customs meaning policyholders now face a 50 per cent levy on their funds.

HMRC removed the scheme from its approved list of Qrops in 2008 claiming it did not meet the statutory conditions to be a Qrops. Two years later Equity Trust brought a case against the Revenue arguing the HMRC ruling was wrong and that it should not have been removed.

On Friday, the high court ruled in HMRC’s favour with Lord Judge Hodge saying Equity Trust trust had failed to prove the pension was open to Singaporean residents and that the scheme should have been registered with a regulator in Singapore.

Panthera managing director Bethell Codrington says the firm intends to appeal against the decision.

An HMRC spokesman says: “We welcome the ruling and are pleased the Court has recognised HMRC’s longstanding view of the legislation.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Christopher Lean 23rd May 2011 at 1:10 pm

    Assuming that this is not turned over at appeal, is it likely that all policyholders will be hit with an unauthorised payment charge or just those that encashed the whole fund ( if there were such instances)?

  2. Manish Chaurasiya 1st March 2013 at 10:53 am

    There is NO requirement to purchase an insurance annuity.
    Leave all unused pension funds to your beneficiaries free of UK taxes.
    There are no limits on contributions to the fund, nor fund size.
    Flexibility as to when benefits can be taken from the Plan (personal tax status allowing).
    Take income and benefits in currency of your choice.
    Greater Tax efficiency on drawdown.
    Tax advantages and savings.
    I appreciate you. This is interesting information provided in this post.
    If you want to know more about QROPS , go to the link below.
    QROPS

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