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.”