QROPS Massacre

[AyG]

According to Citywire (reporting the FT), HMRC has derecognised three quarters of QROPS.

"Australia saw 1,599 of a total 1,600 schemes delisted, while 741 schemes in Ireland were delisted, leaving just 56. Switzerland was left with one, down from 100, as 30 of 34 French schemes were removed."

http://citywire.co.uk/wealth-manager/news/hmrc-steps-up-offshore-pension-curbs/a824125

When there was the wholesale derecognition of Guernsey QROPS there were no tax penalties for pensioner holders. However, the article suggests that there may be a 55% tax charge for savers in the now delisted QROPS.

[dabhand]

Think this is the updated listing:

https://www.gov.uk/government/publications/list-of-qualifying-recognised-overseas-pension-schemes-qrops/list-of-recognised-overseas-pension-schemes-notifications

As you say, quite a pruning exercise by HMRC.

Maybe they are doing this ahead of allowing QROPS to align with the recent changes to the UK pension providers. Provided the controlling territories make the appropriate legislation changes.

[dabhand]

Interesting article in the FTAdvisor of a few weeks back.

http://www.ftadviser.com/2015/06/11/opinion/blogs/qrops-confusion-reigns-GF9k9jt0dI5HnwUXALU2MN/article.html

What appears to have happened is that, just prior to the UK budget in March 2015, HMRC changed their previously indicated intention to allow QROPS providers the same freedom as UK based pension providers in respect of flexi drawdowns.

Outside of Malta, which, as a EU member is exempt from this restriction but has potential tax disadvantages for Thai based pensioners, other jurisdictions are not allowed to offer flexi drawdowns. This has been noted by HMRC as only a 'temporary' situation but that may just mean that other restrictions will be imposed on the back of a allowing flexi drawdowns to apply to QROPS. No apparent change in the position as it currently applies.

Anyone considering a QROPS should keep this in mind as one of the points to be looked at when reviewing the options.