QROPS - Looking For New Solutions

Another twist in the on-going saga of HMRC and QROPS rules has resulted in a refocusing of where the responsibility lies in ensuring that a QROPS scheme meets requirements.

A line has been drawn in the sand on QROPS transfers completed by 24 September 2008, but thereafter, and for any new transfers into a QROPS, there is a greater onus on both the advisor and the member to ensure that any scheme meets the QROPS requirements and potentially a UK pension trustee may be nervous about transferring to a QROPS unless it is satisfied that the scheme is going to comply with the rules. With the prospect of a tax charge of 55% on the scheme assets if a transfer is deemed to be inappropriate, there are going to be concerns on all parties as to where the liability would lie for such a tax charge being incurred.