Update regarding changes to the tax and pension rules governing UK pension schemes
This is an update following on from the 4 June news regarding the changes affecting Australian QROPS.
As of 1 July 2015, Her Majesty’s Revenue and Customs (HMRC) published a revised list of Recognised Overseas Pension Schemes (ROPS). Only one Australian fund is listed and HMRC has indicated that even though a fund may appear on the ROPS list, this does not guarantee that it’s a ROPS or that a transfer to it will be free of UK tax. They consider that it’s the responsibility of the member and the UK transferring-out fund to determine whether the foreign fund is a QROPS.
It’s our understanding that the HMRC has interpreted all Australian funds are unable to comply with the 6 April 2015 Age Pension Test, due to overarching Australian legislation. Discussions about viable options for Australian funds are continuing with the UK authorities and we’ll keep you informed of progress on this front.
How this affects you
All UK transfers remain on hold while we seek clarification directly from HMRC regarding our options. We recommend customers seek advice from a registered tax agent for any UK transfer requests.
We appreciate your patience while we deal with this industry wide issue.