The comments from Nigel Green, chief executive of the deVere Group, come after the UK’s tax authority published on Friday its 2013 Draft QROPS Regulations for external comment.
More than 10,000 UK pensions were transferred out of the UK last year, 2,250 of these by the deVere Group.
Mr Green explains:
“We fully support these proposed changes as they will introduce even more robust reporting procedures, which will further protect those transferring their pensions out of the UK and strengthen the pension transfer industry.
“Former QROPS will, under the new rules, have to follow reporting requirements even if they are no longer listed as QROPS, and failure to do so will result in heavy fines.
“Additionally, a UK scheme administrator will have to notify the date on which the member left the UK; or if the member is still a UK resident, they will have to notify HMRC when the member ceases to be UK resident.
“The proposals highlight that the UK is fully committed to allowing free movement of capital under EU law.”
“Should they come into force, these regulations will help prevent the ill-advised practice of pension-busting, which wholly goes against the spirit of QROPS legislation, and will crackdown on those who aren’t genuinely leaving the UK from transferring a pension fund into a QROPS.
“HMRC’s possible crackdown is another indicator of how mainstream and recognised QROPS have become for genuine expatriates and genuine transfers.”
Integrity IFA for independent financial advice in Edinburgh and the Lothian’s.