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QROPS (Qualified Recognised Overseas Pension Scheme)

Following the 2012 Budget, demand for QROPS is expected to rise. If you are not a member of a QROPS already, it is worth looking into to offset changes to tax relief announced in the Budget. You should also not put off moving your pension, as further regulations are expected as part of the Finance Bill in 2013.

The operating of each QROPS must now report all benefits paid out for 10 years from when a member joins a scheme. Richard Buchanan, operations director at Alexander Forbes Offshore, says this makes it essential to research your QROPS provider before transferring funds, to make sure they not only have QROPS approval but also have the resources to provide HMRC with the reports they require.

“These changes will make it imperative that prospective clients deal with a reputable firm located in a quality jurisdiction where compliance with the new QROPS rules is the norm…HMRC have the power to withdraw QROPS approval from those schemes that fail to comply with the rules, which would negate the benefits of any transfer.” (Buchanan, 2012)