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QROPS
Amendments to
QROPS rules - 2015 For professional advisor use only

Introduction
With the UK government introducing changes to UK pensions rules on a regular basis, it is important for
financial advisors to understand the implications of these changes on their clients. This document gives a
summary of recent key changes and their impact on UK pension holders considering a transfer to a QROPS.

The changes
The draft Overseas Pension Schemes (Miscellaneous Amendments) Regulations 2015 and an explanatory
memorandum were issued by HMRC on the 19th December 2014. The final version of the regulations was
issued on 17 March 2015. These rules have confirmed the changes which come into effect from 6 April 2015.

Analysis of the new rules

Another New Acronym QOPS
QOPS simply means Qualifying Overseas Pension Schemes. The new rules state that pension contributions
to a QOPS can receive UK tax relief.
The UK Lifetime Allowance will still apply to this but it is a new benefit for overseas pension schemes
and further reinforces the fact that HMRC has no desire to prevent a UK resident from participating in an
overseas pension scheme.

Transfers of UK tax relieved pensions can be made tax free to QROPS

The rules confirm that transfers of UK tax relieved pensions can be made tax free to QROPS (ie. with
the R), however, the scheme must meet HMRCs conditions to be a qualifying recognised overseas
pension scheme.

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 Most of the
jurisdictions from
which QROPS are
Requirement to use 70% of the fund to provide an
income for life
operated already have a
In the latest version of the regulations, HMRC has stated that
double tax agreement or
the 70% rule (also known as the 70/30 rule) will stay in place tax information exchange
temporarily and that for the time being schemes will still be agreement with
required to use 70% of the fund to provide an income for life and
the UK.
pay a maximum of 30% as a lump sum see Bulletin, March 2015.
This does not apply to Malta QROPS as Malta is part of the EU, so
Malta QROPS providers are liaising with the Malta Financial Services
Authority (MFSA) to confirm that they will be able to allow 100% flexibility.

Requirement for schemes established outside the European

Economic Area (EEA) to be operated by a regulated pension provider
A new rule is that schemes established outside of the EEA (for example in New Zealand) that are not
regulated as a pension scheme by a body in their home country must be operated by a pension provider
that is regulated to provide pensions and is regulated to provide the scheme in question.
It is not yet known how these rules will be interpreted but they are likely to be positive for jurisdictions which
have very clear pensions regulation.

Retirement Dates
The new rules state that pension benefits arising from UK tax relieved funds must be payable no earlier than
they would have been under the UK registered pension scheme rules.
This rule will affect some jurisdictions such as Malta and The Isle of Man which have previously been able to
say that they can pay out benefits earlier than under a UK scheme due to their local rules.

QROPS Scheme Administrator Reporting

The rules set out the information that a scheme manager of a QROPS is required to provide and removes
the need, in the majority of cases for the scheme manager, when reporting information, to consider whether
the individual is (or has been in the last five full tax years) UK resident. It also changes the timing of the
reporting of information so that a scheme manager of a QROPS has to report a payment within 91 days of
the payment being made.

Individual Member Reporting

There is a new requirement for individual members making a transfer from a UK registered pension scheme
to a QROPS to supply information to the UK registered pension scheme.
This is to enable the UK registered pension scheme to meet its reporting requirements to HMRC.

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Double Taxation Treaties
For a transfer to a QROPS to be made free of tax, the scheme receiving the transfer must be operated in a
country which has either a double taxation agreement or a tax information exchange agreement with the UK.
The majority of the jurisdictions from which QROPS are operated already have a double tax agreement or a
tax information scheme with the UK.

Important Notes
The information contained within this document has been produced by The QROPS Bureau, on behalf of
Hansard International Limited. It has been produced for general information purposes only and does not
constitute investment advice.
All Hansard International products are covered by the Life Assurance (Compensation of Policyholders)
Regulations 1991. Tax consequences will depend on an individuals circumstances and residence, and may
change over time. Applicants are advised to seek independent professional advice before applying for any
product or if their tax circumstances change during the contract term.
Past performance is not a guide to future performance. Unit prices can go down as well as up. Unit price
performance may be affected by movements in exchange rates.
For full details of Hansard products, please refer to the product literature.
This material is intended to be for the use of professional advisors. The QROPS Bureau does not give advice
directly to members of the public.
The QROPS Bureau has taken all reasonable measures to ensure that the information contained in this
document is accurate based on its understanding of current legislation. The QROPS Bureau cannot accept
responsibility or liability for errors in or omission from any information given and for any consequences arising.
Where local taxation information has been provided, this is based upon a generic understanding of the
jurisdiction as a whole. Taxes may vary regionally due to local tax office interpretations, and tax rules may
change on a regular basis. This is only a guide and it is highly recommended that you seek local specialist
tax advice. Pension trustees may require specialist tax advice.

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Hansard International Limited

Harbour Court, Lord Street, Box 192, Douglas, Isle of Man IM99 1QL, British Isles
Telephone: +44 1624 688000 Fax: +44 1624 688008 Website: hansard.com
Registered Number 032648C
Regulated by the Isle of Man Insurance and Pensions Authority

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