The following questions all relate to QROPS.
Question 1: David transferred his UK registered Pension Scheme to a QROPS in Guernsey in 2009. His QROPS administrator lost their QROPS status in 2012 along with the majority of Guernsey QROPS, this means that David
A) will need to transfer his Guernsey pension rights to a new QROPS within three years of his scheme ceasing be a QROPS or suffer a “member payments charge”
B) will need to transfer his Guernsey pension rights to a new QROPS within five years of his scheme ceasing be a QROPS or suffer a “member payments charge”
C) can continue with the same scheme and the administrator still has to maintain their reporting to HMRC
D) can continue with the same scheme and the administrator no longer has to maintain their reporting to HMRC
Question 2: HMRC have changed the qualifying conditions for a scheme to be a QROPS on or after 6 April 2012. Which one of the following is the main change made by HMRC to the qualifying conditions?
A) A QROPS will only be able to provide benefits from a member’s 60th birthday at the earliest unless the member is in serious ill-health
B) The tax reliefs and tax exemptions on the contributions, build up and receipt of benefits under the scheme must apply equally to non-resident and resident members
C) A QROPS will be unable to invest in residential property
D) The tax reliefs and tax exemptions on the contributions, build up and receipt of benefits under the scheme can only apply to resident members
Question 3: From 6 April 2012 what new requirement must be undertaken by an individual before he is able to transfer his UK registered scheme benefits to a QROPS?
A) The member must confirm that he is non-UK resident at the time of the transfer
B) The member must confirm that he will notify HMRC if his benefits are onwardly transferred from the QROPS to another scheme
C) The member must sign an acknowledgement confirming that if the transfer to the QROPS is not a ‘recognised transfer’ it may result in his having to pay unauthorised member payment charges to HMRC after the transfer has been made
D) The member must confirm that he will inform HMRC if the QROPS invests in ‘taxable property’
Question 4: Sanjay has been non-resident since 1 January 2009. He transferred his UK SIPP to a QROPS on 1 May 2013. The QROPS will have a requirement to report, any payments to Sanjay, to HMRC until at least
A) 1 January 2014
B) 1 May 2018
C) 1 January 2019
D) 1 May 2023
Question 5: Under the current QROPS reporting rules effective from 6 April 2012, for what period must a QROPS report any payments, made to or in respect of a member, to HMRC?
A) for any purpose
B) and use the value of its assets as security for the loan
C) to invest in commercial property, but not to facilitate investment gearing
D) from the scheme member