Schemes can tell HMRC if they meet the conditions to be a recognised overseas pension scheme (ROPS).
HMRC then publish an updated list of such schemes. This normally occurs twice each month (at the start and mid-way point of the month), but exceptional updates may also be made, for example to prevent fraudulent activity.
The recognised overseas pension schemes notification list has been updated with 20 schemes added, 6 removed and 1 amended.
Importantly, inclusion on the list does not guarantee that these ROPS, or any transfers to them, will be free of UK tax: “It’s your responsibility to find out if you have to pay tax on any transfer of pension savings.” As such, HMRC warn that they:
“will usually pursue any UK tax charges (and interest for late payment) arising from transfers to overseas entities that do not meet the ROPS requirements even when they appear on this list”.
Penalties may also be charged in appropriate cases.
Related content from Claritax Books
Pension Tax Guide is a thorough and practical guide to the complexities of the UK pension rules, and to the part they play in legitimate tax planning. Suitable for accountants, tax specialists and other finance professionals, the book is written by Katharine Lindley, a client director with EQ Investors.