To help you to keep up with the fundamentals of tax, retirement and financial planning, try answering these five questions.
HMRC new reporting requirements for Qrops from 6 April 2012 will apply to
A) All Qrops, irrespective of when they were established
B) Only those Qrops established on or after 6 April 2012
C) Only those Qrops established on or after Budget Day 2012 (21 March 2012)
D) Only those Qrops established on or after the 2011 Autumn Statement (29 November 2011)
HMRC has 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
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’
Tarquin has been non-resident since 1 January 2008. He transferred his UK Sipp to a Qrops on 1 May 2012. The Qrops will have a requirement to report, any payments to Tarquin, to HMRC until at least:
A) 1 January 2013
B) 1 May 2017
C) 1 January 2018
D) 1 May 2022
Under the new Qrops reporting rules effective from 6 April 2012, for what minimum period must a Qrops report any payments, made to or in respect of a member, to HMRC?
A) 5 years from the date of the member’s benefits being transferred to the Qrops
B) 7 years from the date of the member’s benefits being transferred to the Qrops
C) 8 years from the date of the member’s benefits being transferred to the Qrops
D) 10 years from the date of the member’s benefits being transferred to the Qrops
Questions are supplied by Technical Connection
Answers: A, B, C, D, D