British expats and international workers switching UK pensions to an offshore Qualifying Recognised Overseas Pension Scheme (QROPS) need to check the scheme beats the pension age test.
Penalties for failing the test are severe for retirement savers, starting with a 55% tax charge against the value of the transferred money.
Expats with Canada QROPS have seen HMRC stop transfers to all 67 of the country’s QROPS since August 2016.
Although HMRC refuses to comment about reasons transfers are blocked, the reason appears to be that Canadian QROPS can be cashed in at any time.
The test bars retirement savers from cashing in their pensions before they celebrate their 55th birthday in line with pension freedoms in the UK.
Transfers blocked to all Canada QROPS
QROPS providers in Australia fear a similar cull as many expat pensions also allow investors to take money out of their savings before the age of 55.
The latest QROPS List published by HMRC details 1,280 pensions worldwide – five more than on the last list posted two weeks ago.
Canada had three QROPS delisted and the Netherlands one.
New QROPS were listed in Australia (Four); Jersey (Two) and Guernsey, Ireland and New Zealand (One each).
The list is a guide to schemes that have self-certified that they meet QROPS qualification rules.
Transferring pension cash to an offshore scheme not on the list can result in financial penalties.
HMRC says 108,000 savers have switched £8.8 billion of pension cash into QROPS since the scheme was started in April 2006.
The next QROPS list is due on March 01, 2017.
For more information about QROPS and the benefits it provides, download the iExpats QROPS Guide or complete the Get Advice form.
View the latest itemised list of QROPS from HMRC here
QROPS List By Financial Jurisdiction
| Country | No of QROPS |
|---|---|
| Australia | 391 |
| Austria | 9 |
| Barbados | 1 |
| Belgium | 9 |
| Bulgaria | 2 |
| Czech Republic | 2 |
| Denmark | 3 |
| European Union | 1 |
| Finland | 1 |
| Germany | 25 |
| Gibraltar | 51 |
| Greece | 1 |
| Guernsey | 150 |
| Hong Kong | 18 |
| Hungary | 2 |
| Iceland | 1 |
| India | 16 |
| Ireland | 87 |
| Isle of Man | 248 |
| Jamaica | 1 |
| Jersey | 85 |
| Kenya | 1 |
| Kosovo | 1 |
| Latvia | 3 |
| Liechtenstein | 3 |
| Luxembourg | 4 |
| Malta | 32 |
| Mauritius | 3 |
| Netherlands | 60 |
| New Zealand | 35 |
| Norway | 4 |
| Portugal | 4 |
| South Africa | 12 |
| Spain | 2 |
| Sri Lanka | 1 |
| Sweden | 6 |
| Switzerland | 2 |
| Turkey | 2 |
| United States of America | 1 |
| Total: | 1280 |
Source: HMRC
The table shows the net number of schemes, accounting for new listings and removals since the publication of the last list.
