TMF International Pensions’ participation in the (Q)ROPS Industry will continue.

In the UK Government’s guidance notes issued on 8 March 2017 concerning the Overseas Transfer Charge and detailing the new regime on (Q)ROPS, those managers of schemes that were registered as (Q)ROPS on 8 March 2017 must decide if they wish their scheme to continue to be a (Q)ROPS, and operate the overseas transfer charge.

For those that do, this requires submission of a revised undertaking (APSS240) to HM Revenue and Customs (HMRC) by 13 April 2017. If the scheme does not do this, the scheme will cease to be a (Q)ROPS from 14 April 2017.

TMF International Pensions is pleased to announce that it has submitted its APSS240 to HMRC and fully intends to remain in this market.

Requirements

In order for HMRC to process these forms and issue a new list of registered schemes, the ‘list’ will be suspended on 14 April 2017 with a revised list being published on 18 April 2017. This will mean that no ceding scheme will make a transfer payment during this period. It is therefore not unreasonable to expect that ceding schemes will want confirmation that the scheme they are dealing with will continue to be registered after 13 April.

New rules present opportunity

Much has been written in the trade press regarding the future of (Q)ROPS and the dramatic effect the new rules are having upon the market. However, we at TMF International Pensions look upon this as an opportunity to strengthen our ties with qualified and regulated intermediaries to provide tax planning opportunities for their clients. (Q)ROPS were never designed as a mass market product to be sold by unregulated and unqualified sales people, with questionable benefit to the client.

Due diligence

With the new reporting requirements, there is a need to keep far more accurate data on clients, in particular with regards to residency for tax purposes, monitoring of the relevant period, due diligence and reporting.

Finally, trustees will need to be aware that when the ‘overseas transfer charge’ arises on a transfer from a (Q)ROPS or former QROPS to another QROPS, or a change of residency during the ‘relevant period’ occurs, there is joint and several liability of the member and the scheme manager of the scheme making the transfer.

Reliance on third parties (particularly unregulated and unqualified) to provide the relevant information will not absolve trustees of liability, if found to be inaccurate.