Issue 574, 6 July 2015
In this issue:
- QROPS: HMRC publishes revised list of ROPS
- ASFA Thomson Geer regulatory update (June quarter)
QROPS: HMRC publishes revised list of ROPS
The United Kingdom’s (UK’s) Her Majesty’s Revenue and Customs (HMRC) has published a revised list of Recognised Overseas Pension Schemes (ROPS) and has removed all but one Australian fund from the list. The full list is available here. To be a Qualifying Recognised Overseas Pension Scheme (QROPS) a superannuation fund must be a ROPS, but not all ROPS are necessarily QROPS.
HMRC has indicated that even though a fund may appear on the ROPS list, this does not guarantee that it is a ROPS or that a transfer to it will be free of UK tax. They consider that it is the responsibility of the member and the UK transferring-out fund to determine whether the foreign fund is a QROPS.
HMRC has indicated that it will usually pursue any UK tax charges (and interest for late payments) arising from transfers to overseas entities that do not meet the ROPS requirements, including where the taxpayers are overseas.
Given that the changes to the QROPS regulatory framework, including the introduction of the Pension Age Test, took effect from 6 April 2015, loss of QROPS status will be from this date. As such, any transfers on, or after, 6 April 2015, will not have been made to a QROPS and will be potentially liable to the imposition of a UK tax charge.
The Treasury department is continuing to liaise with HMRC with respect to this, and ASFA will keep you informed of any developments.
Members wishing to discuss QROPS should contact Fiona Galbraith.
ASFA Thomson Geer regulatory update (June quarter)
Delivered in partnership with Thomson Geer (and previously with HWL Ebsworth), the latest edition of the ASFA Thomson Geer regulatory update has been released and is now available for members to download from the regulatory update section of the ASFA Toolbox.
This free ASFA member service seeks to keep you up to date with the changing superannuation environment, new legislation, developing policy and pertinent case law developments. The update is issued quarterly, and provides essential information for those wanting to stay abreast of the challenges and issues facing superannuation funds.
The information will be of particular use to:
- trustees
- compliance managers
- risk managers
- operations managers
- administrators and self-managed superannuation fund (SMSF) service providers
- members of investment committees
- government and regulatory liaison managers.
For trustees, the update will provide an overview of key information, with more detailed information directed at senior managers and administrators.
Members wishing to discuss the update can contact Julia Stannard.
