HMRC has culled at least 435 QROPS schemes from its new register published yesterday.
On top of the 309 fewer Guernsey based Qrops Money Marketing reported yesterday, the number of schemes available in Jersey fell from 138 to 64, a fall of 54 per cent. The number of Isle of Man registered Qrops fell from 185 to 173 between March and April, while the number of schemes registered in New Zealand fell from 64 to 23, a fall of 64 per cent.
The total number of pensions schemes recognised by HMRC as Qrops fell from 2,980 to 2,651, a fall of 329 or 11 per cent. The total drop in the number of schemes in Guernsey, Isle of Man, Jersey and New Zealand is 436. The difference between this and the overall fall is down to new schemes being added to the list.
The figures come from a comparison of HMRC’s Qrops list published in March and its latest one published yesterday.
Worldwide Financial Planning IFA Nick McBreen says: “It is an example of the devil being in the detail. After the euphoria of rolling these things out it now seems the proposition is not as compelling as people thought. Qrops are still not properly understood and people look at these when perhaps they are not the best thing, so people still need to be careful about using them.”
HMRC’s final Qrops rules, published last month, require providers to treat non-residents and residents of a jurisdiction in the same way for tax purposes from April 6. It also placed strict new rules on schemes in New Zealand which were considered to be breaking Qrops rules by allowing people to cash out their entire pensions while Qrops rules insist schemes should retain 70 per cent to transferred funds for retirement income.