View more on these topics

HMRC warns it has Qrops under surveillance

Advisers have been warned to ensure clients are fully aware of the risks of using a Qrops after HM Revenue & Customs confirmed it is monitoring the schemes closely.

HMRC deregistered all Singapore-based Qrops last month, leaving members open to an unauthorised payment charge of 55 per cent of their transferred pot as well as uncertainty over their pension position.

A spokesman says: “HMRC is monitoring those schemes registered as Qrops and transfers to Qrops closely and will take appropriate action against any abuse it finds. If a scheme is not a Qrops, transfers from UK registered schemes out of UK tax-relieved funds will not be recognised as transfers and will attract a tax charge.”

Bethell Codrington, managing director of Panthera, a Singapore-based Qrops which is currently appealing to HMRC, says: “We are in virgin territory. There is no precedent so we cannot say what has happened. They need to give some clarity.”

Changes in the domestic legislation of the host country could also mean a Qrops falls foul of UK regulations.

Richard Jacobs Pensions and Trustees Service director Richard Jacobs says: “It is not just pension legislation you have got to be looking at, it is taxation and other legislation in the UK and receiving countries.”


Broker Talkback

Do you think it is right for providers to introduce postcode pricing for their annuities?

Review recommends regulating agents

The Carsberg review of residential property has recommended that letting agencies and estate agents become regulated.

The Great British Break-Off

Despite predictions that a vote to leave the European Union would result in an economic apocalypse, UK equities have shown the market equivalent of a stiff upper lip: bouncing back, keeping calm, and carrying on. Although the road towards Brexit remains clouded in uncertainty, UK equities offer a range of opportunities to investors seeking returns […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm