The Recognised Overseas Pension Schemes (ROPS) 01 November 2024
Point 5.32 of the UK Budget on 30 October 2024 announced:
Since 09 March 2017, certain transfers to and from a Qualifying Recognised Overseas Pension Scheme ?(QROPS) have been liable to a 25% tax charge.? This is the Overseas Transfer Charge (OTC) and applies unless the transfer is excluded.?
The above statement and the supporting ‘Reducing tax-free overseas transfers of tax relieved UK pensions’ Policy Paper details how the exclusion from the?OTC?will apply where there are transfers to?QROPS?established in the?EEA?and Gibraltar.
The List is a must-read for all UK payroll and pensions professionals, updated twice monthly on the 1st and the 15th of the month, though this may change if those dates fall on a weekend or Bank Holiday.?
Sometimes, however, HMRC will update the List at other times ‘to temporarily remove schemes while reviews are carried out, for example where fraudulent activity is suspected’.?
The ROPS List contains details of all overseas pension schemes that have advised HMRC they want to be included on it.? ‘Recognise’ indicates that HMRC recognise the overseas pension scheme as being one that is eligible to receive transfers of UK pension benefits.? However, it does not mean that they are approved by HMRC or automatically qualify as a ‘qualifying scheme’ (a Qualifying Recognised Overseas Pension Schemes (QROPS)).??
But the scheme must be a ROPS before it can tell HMRC that it is a QROPS! ?
On 01 November 2024, the update notification says there have been 31 schemes added, 1 amendment and 19 removed:?
So, here is my analysis of the details provided within the List but overwritten 2 weeks later.? The updated List of 01 November 2024 contains the following changes from the ROPS List published 15 October 2024:
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As above, just because it meets the criteria to be recognised by HMRC (ROPS) does not mean that the scheme is qualifying (a QROPS).??
Where the List is used, please ensure you look at every update, as HMRC’s current team of civil servants in charge of updating the ROPS list have refused to change the way that they work.? Whilst details are contained within the list, these are overwritten the next time the list is updated.??
So, in the absence of the details, professionals must constantly monitor the list every time it comes out for fear that they will miss important information.?
Also, do check the details carefully to see if the update details match reality, as sometimes they do not.?