Qrops - Proposed Changes

The UK government has issued a draft amandment to the QROPS regulations

Quote:-

As part of the draft legislation there are four particularly significant proposed changes: -

1. Those transferring their pensions to a QROPS will be required to sign an acknowledgment that they understand they may be subject to tax charges if QROPS rules are breached. This is likely to ensure that those considering a transfer will take best advice and work with reputable brokerages only.
2. QROPS providers will be required to report to HMRC all payments made from pension funds for 10 years from the date the pension is transferred overseas. Currently this requirement only exists for the first 5 years following the QROPS holder leaving the UK. This should eradicate those QROPS that manipulate the system and pay out 100% lump sums etc.
3. New conditions should mean that 70% of accumulated funds transferred would be used to provide an income in retirement – the whole purpose of any pension scheme surely!
4. And finally, it is proposed that anyone with a QROPS located in a different country to the one in which they live and are tax resident will not be able to receive more tax relief than members resident in the nation where the QROPS is held.

For full details, here is the link to the article:

Harsh Changes to QROPS Proposed: It's the Industry's Own Fault

Regarding Thailand Tax laws, can anyone advise on how pension payments are viewed - are they classed as 'income', 'savings' or other earnings category?

There's a chance that item 4 above may get binned so let's hope.

Cheers

John