What are the HMRC QROPS Reporting Requirements?
In order to register with Her Majesty’s Revenue and Customs (HMRC), a Qualifying Recognised Overseas Pension Scheme (QROPS) has to agree to undertake the HMRC QROPS reporting requirements.
QROPS came into effect with the introduction of Pensions Simplification in the UK, on A-day, which was 6th April 2006. The purpose of the legislation was, in order to transfer a UK pension overseas, to remove the responsibility from the migrating individual, to make specific declarations and provide certain documents and place the responsibility on the receiving overseas scheme to register with the HMRC as a Qualifying Recognised Overseas Pension Scheme. Without that registration with HMRC an overseas pension scheme would not be permitted to accept a transfer in from a UK pension scheme, however, the responsibilities of the QROPS does not end with registering.
Essentially, each time a QROPS makes a payment to a member, in respect of the transfer in from a UK pension, the payment must be reported back to HMRC.
- Pension payments to the member commences;
- A lump sum payment is paid;
- Death benefits are distributed.
The responsibility for the overseas scheme to follow the HMRC QROPS reporting requirements, are for the duration of the Reporting Period.
The reporting period is 5 complete, consecutive tax years of the UK pension member’s overseas residency. After the member has been resident overseas from the UK for this period, the QROPS scheme does not have any requirements to report any further payments – unless the member returns to the UK.
