HMRC has confirmed that the QROPS List is suspended until June 5.
The list was last suspended in April due to offshore pension rule changes and 410 QROPS pensions were delisted.
In April, a new test for qualifying pension schemes was introduced and schemes that failed were removed from the QROPS List.
The list is not an official list of ‘approved’ schemes, but pension providers cannot transfer funds from a UK pension or another QROPS to a fund that is not included on the list.
Suspending the list effectively freezes the market as financial advisers and providers cannot confirm a QROPS is open for a transfer.
More offshore pensions to close?
“We told you about planned changes to the scheduled publication of the ROPS Notification List following recent changes to the pension tax rules relating to overseas pension schemes. This is to remind you of planned changes to the scheduled publication of the ROPS notification list,” said a short statement in HMRC’s Pension Newsletter for June 2017.
The QROPS List schedule for June is:
- June 2, 2017 – ROPS notifications list suspended
- June 5, 2017 – Updated list published
- June 15, 2017 – Routine publication of the ROPS List
More QROPS are expected to face delisting as the result of the list suspension, but HMRC refuses to comment about why the list is in limbo.
According to the last QROPS List published on May 15, 2017, 926 QROPS are open in 29 finance centres worldwide.
No guarantees, says HMRC
The online QROPS List page explains that the obligation lies with retirement savers to make sure the fund they transfer to is a QROPS.
“HMRC can’t guarantee these are ROPS or that 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,” says the website.
“HMRC will usually pursue any UK tax charges and interest for late payment arising from transfers to overseas entities that don’t meet the ROPS requirements even when they appear on this list. This includes where the ROPS requirements have changed and where taxpayers are overseas. HMRC will also charge penalties in appropriate cases.”
