99 Australian QROPS Removed from the Latest HMRC QROPS List
The Inland Revenue have just removed 118 QROPS schemes from its latest list including 99 Australian QROPS, 15 Indian QROPS, 3 Canada QROPS and 1 Mauritius QROPS are no longer accepting transfers in.
The Inland Revenue always decline to comment on why a Qualifying Recognized Overseas Pension Scheme is removed from the list. Sometimes it is non-compliance from an administrative perspective and sometimes it is for more devious reasons such as cashing-out pensions, using it as a transit vehicle or illegal tax avoidance. Just because a QROPS has been removed from the list doesn’t mean that it can’t be added back once it has gained compliance.
Australian QROPS providers have faced problems before with over 100 excluded from the list back at the beginning of 2010. The biggest crackdown came two years later when most Guernsey schemes and the new Isle of Man schemes which were created were shut down. They also closed all New Zealand schemes which didn’t have a New Zealand based discretionary fund manager.
For those living in Australia, there are many options, notably the large Australian Super which can be transferred into. For those in Australia, but thinking or retiring elsewhere or those who want more flexibility in investing, you can transfer to a QROPS in Malta who have a Double Taxation Agreement with Australia.
Similarly, British expats in Canada and returning Canadians who have worked in the UK can also transfer to a QROPS in Malta for efficient tax and retirement planning. Malta has a Double Taxation Agreement with Canada.
The culling of 118 QROPS schemes shows how quickly the QROPS market is evolving. The safest place to transfer is to use large reputable firms such as Boal & Co., Brooklands, Momentum or Sovereign Trustees to protect your pension from UK taxation.
You will need to engage with a QROPS specialist and ask them for a Transfer Value Analysis System (TVAS) report so that you can compare leaving your pension in the UK with a pension transfer overseas. Most reputable financial advisers will be able to prepare a report for you.99 Australian QROPS Axed in HMRC Clampdown by Richard Malpass