A HM Revenue & Customs technical glitch has seen 432 Qrops mistakenly removed from its register.
A HMRC list published on 1 July showed hundreds of schemes have been removed but HMRC says this was due to a mistake and it will try to correct the error shortly. HMRC cannot confirm how many schemes have intentionally been removed, if any, and can provide no further information on the nature of the glitch.
The list contains pension schemes that have told HMRC they meet the conditions to be a Qrops and have asked to be included on the list. It says schemes not included on the list may still be legitimate and HMRC cannot provide assurances of a scheme’s status.
HMRC is strengthening regulations on Qrops by requiring any overseas schemes to report payments out of funds, imposing penalties on non-compliant schemes and introducing a process for scheme managers to re-notify HMRC they meet the conditions for Qrops.
Murphy Financial associate partner Adrian Murphy says: “Although this is a mistake there are cowboys selling scams around Qrops as a solution to people’s problems. I would expect to see some closures of schemes.”