Hundreds of Qualifying Recognised Overseas Pension Schemes (QROPS) have been removed from the latest official list by HM Revenue and Customs, as reported here.
The reason for the suspensions is a mystery to QROPS providers as HMRC has not notified them why their schemes are off the list nor made any public statement about the move.
According to the latest QROPS list, dated July 1, 2013, no new QROPS have opened and no financial jurisdictions have been dropped since the last list was published two weeks ago – but 432 pensions are suspended.
Industry speculation suggests all QROPS that have joined the list since new regulations were introduced in April 2012 are suspended.
The numbers are difficult to correlate as Slovakia was removed as a QROPS jurisdiction in this period, which led to the exclusion of four schemes. Cyprus was removed on April 12, 2012, which excluded a further four pensions.
QROPS list explained
QROPS providers self-certify their offshore pensions meet HMRC regulations on the list.
UK pension schemes cannot transfer funds to a QROPS that is not listed except under special circumstances.
Suspension does not indicate any issues with a specific QROPS provider.
HMRC explains on the list: “HMRC may also temporarily remove a scheme from this list in certain circumstances while it carries out a review.
“Such removal will not necessarily mean that the scheme has been excluded from being a QROPS by HMRC – but the scheme will be removed from the published list until HMRC has completed its review.”
Providers can also ask for removal of their schemes or HMRC can suspend a scheme for breaking QROPS rules.
Singapore ROSIIP link?
The removal of the QROPS schemes is linked with the current HMRC Singapore ROSIIP case in the High Court by some industry experts.
HMRC wants to withdraw from the case, but the judge has ordered the tax authority to produce a QROPS policy statement by July 17 to do so.
QROPS Pension Changes April 2012 – July 2013
| QROPS Jurisdictions | Number of QROPS pensions | |||
|---|---|---|---|---|
| April 12, 2012 | July 6, 2012 | June 15, 2013 | July 1, 2013 | |
| Australia | 925 | 928 | 1174 | 915 |
| Austria | 9 | 9 | 9 | 9 |
| Bangladesh | 2 | 1 | 1 | 1 |
| Barbados | 4 | 4 | 4 | 4 |
| Belgium | 22 | 22 | 22 | 22 |
| Bulgaria | 3 | 3 | 3 | 3 |
| Canada | 97 | 95 | 98 | 92 |
| Czech Republic | 4 | 4 | 4 | 4 |
| Denmark | 9 | 8 | 8 | 8 |
| European Union | 1 | 1 | 1 | 1 |
| Finland | 8 | 8 | 4 | 4 |
| France | 36 | 36 | 39 | 37 |
| Germany | 62 | 59 | 53 | 53 |
| Gibraltar | 10 | 10 | 18 | 10 |
| Greece | 2 | 1 | 1 | 1 |
| Guernsey | 3 | 16 | 46 | 30 |
| Hong Kong | 25 | 24 | 26 | 24 |
| Hungary | 1 | 1 | 1 | 1 |
| Iceland | 3 | 3 | 3 | 3 |
| India | 18 | 18 | 18 | 18 |
| Ireland | 648 | 646 | 710 | 643 |
| Isle of Man | 172 | 164 | 217 | 193 |
| Italy | 38 | 39 | 45 | 38 |
| Jamaica | 2 | 2 | 2 | 2 |
| Jersey | 137 | 138 | 133 | 128 |
| Latvia | 1 | 1 | 1 | 1 |
| Liechtenstein | 3 | 2 | 2 | 2 |
| Luxembourg | 8 | 8 | 8 | 8 |
| Malaysia | 1 | 1 | 1 | 1 |
| Malta | 10 | 8 | 15 | 9 |
| Mauritius | 2 | 2 | 2 | 2 |
| New Zealand | 23 | 27 | 45 | 32 |
| Norway | 5 | 5 | 7 | 6 |
| Portugal | 23 | 23 | 23 | 23 |
| Russian Federation | 1 | 1 | 1 | 1 |
| South Africa | 30 | 30 | 31 | 30 |
| Spain | 13 | 14 | 16 | 14 |
| Sri Lanka | 1 | 1 | 1 | 1 |
| St Lucia | 3 | 3 | 3 | 3 |
| St Vincent & The Grenadines | 1 | 1 | 1 | 1 |
| Sweden | 6 | 6 | 7 | 6 |
| Switzerland | 137 | 137 | 138 | 132 |
| The Netherlands | 99 | 95 | 103 | 97 |
| Trinidad & Tobago | 3 | 3 | 3 | 3 |
| Turkey | 3 | 3 | 3 | 3 |
| USA | 15 | 15 | 14 | 14 |
| Grand Total | 2629 | 2626 | 3065 | 2633 |
Source: HMRC May 15, 2013
