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The Pension Schemes (Information Requirements — Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pensions Schemes and Corresponding Relief) Regulations 2006

Type Statutory-Instrument

Publication 2006-02-01

Last updated 2025-03-20

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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(ii) a relevant non-UK scheme which is a QROPS or former QROPS other than the flexed scheme; or

(iii) a registered pension scheme,

and in this regulation “other relevant scheme” is a scheme mentioned in sub-paragraphs (ii) and (iii).

(2) The individual must before the end of the relevant period—

(a) pass on a copy of the statement; or

(b) otherwise give notice—

(i) of receipt of the statement; and

(ii) of the date of the relevant event concerned or (if applicable) of its having occurred more than 2 years before the start of the relevant period,

to the scheme manager or scheme administrator (as the case may be) of each other relevant scheme of which the individual is an accruing member on any day in the intervening period.

(3) Where, in the case of a particular scheme which is any other relevant scheme, the individual is not an accruing member of that other scheme on any day in the intervening period but becomes an accruing member of that scheme on a day (“the activation day”) after the last day of that period, the individual must before the end of the 91 days beginning with the activation day—

(a) pass on a copy of the statement; or

(b) otherwise give notice—

(i) of receipt of the statement; and

(ii) of the date of the relevant event concerned or (if applicable) of its having occurred more than 2 years before the activation day,

to the scheme manager or scheme administrator (as the case may be) of that other relevant scheme; but this is subject to paragraph (4).

(4) Paragraph (3) does not apply in connection with the individual becoming an accruing member of any particular scheme if the individual becomes an accruing member of that scheme upon or after becoming a member of that scheme as a result of—

(a) a transfer of the member's relevant transfer fund,

(b) a transfer of any of the member's ring-fenced transfer funds, or

after the date of the relevant event concerned.

(5) For the purposes of this regulation, the individual is an accruing member of a pension scheme on any particular day if—

(a) the individual is an active member of the scheme on that day as a result of there presently being arrangements for the accrual of benefits to or in respect of the individual under a cash balance arrangement or hybrid arrangement; or

(b) a relevant contribution is made under the scheme on that day.

(6) For the purposes of this regulation, a relevant contribution is made under a scheme if—

(a) a relievable pension contribution is paid by or on behalf of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme;

(b) a contribution is paid in respect of the individual by an employer of the individual under a non-cash-balance money purchase arrangement relating to the individual under the scheme; or

(i) paid under the scheme by an employer of the individual; and

(ii) paid otherwise than in respect of any individual,

becomes held for the purposes of a non-cash-balance money purchase arrangement relating to the individual under the scheme,

and in this paragraph “non-cash-balance money purchase arrangement” means a money purchase arrangement other than a cash balance arrangement.

(7) In this regulation—

“the relevant period” means the period of 91 days beginning with—the date of receipt of the statement if the individual is an accruing member of the flexed scheme or any other relevant scheme on any day in the period—beginning with the date of the relevant event concerned; andending with the date of receipt; orif not, the first day after the date of receipt when the individual is an accruing member of such a scheme; and

“the intervening period” means the period—beginning with the date of the relevant event concerned; andending with the first day of the relevant period.

Information to be given by QROPS and former QROPS: transfers of UK tax-relieved funds and ... transfer funds after flexible access

3AC

(1) Paragraph (2) applies if—

(a) in connection with a member of a QROPS or former QROPS which is to be treated as a registered pension scheme for the purposes of section 227G (when pension rights are first flexibly accessed) by virtue of paragraph 9ZA or 9ZB of Schedule 34 (non-UK schemes: application of certain charges) (“the transferring scheme”), there is a transfer of the whole or part of—

(i) the member’s UK tax-relieved fund;

(ia) any of the member's ring-fenced transfer funds; or

(ii) the member’s relevant transfer fund,

from the transferring scheme to a QROPS or to a registered pension scheme (“the recipient scheme”);

(b) the scheme manager of the transferring scheme has reason to believe that the member first flexibly accessed pension rights before the transfer; and

(i) is resident in the United Kingdom when sub-paragraph (b) is met; or

(ii) has been resident in the United Kingdom in any of the five tax years immediately preceding the tax year in which that sub-paragraph is met.

(2) The scheme manager of the transferring scheme must provide the scheme manager or scheme administrator (as the case may be) of the recipient scheme with a statement—

(a) stating that the scheme manager of the transferring scheme has reason to believe that the member first flexibly accessed pension rights before the transfer; and

(b) specifying the date the scheme manager of the transferring scheme understands to be the date when the member first flexibly accessed pension rights.

(3) The requirement under paragraph (2) is to be complied with before—

(a) the end of 91 days beginning with the date of the transfer; or

(b) if later, the end of 91 days beginning with the date when the scheme manager of the transferring scheme first has reason for the belief mentioned in paragraph (1)(b).

Information to be given by QROPS and former QROPS to QROPS about transfers of UK tax-relieved funds and... transfer funds

3AD

(1) Paragraph (2) applies if in connection with a member of a QROPS or former QROPS (“the transferring scheme”) there is a transfer of sums or assets (“the transfer”)—

(a) which immediately before the transfer are comprised in—

(i) the member’s UK tax-relieved fund;

(ia) any of the member's ring-fenced transfer funds; or

(ii) the member’s relevant transfer fund;

(b) from the transferring scheme so as to be held for the purposes of, or to represent rights under, a QROPS (“the recipient scheme”).

(2) The scheme manager of the transferring scheme must provide the scheme manager of the recipient scheme with a statement stating—

(a) the value of so many of the transferred sums or assets as are referable to the member’s UK tax-relieved fund (if any);

(aa) where any of the transferred sums or assets are referable to the member's UK tax-relieved fund, the value of so many of them as are referable to tax-relieved contributions, or tax-exempt provision, made under the scheme before 9 March 2017;

(ab) the value of so many of the transferred sums or assets as are referable to any of the member's ring-fenced transfer funds (if any);

(b) the value of so many of the transferred sums or assets as are referable to the member’s relevant transfer fund (if any); ...

(i) referable to the member’s relevant transfer fund or any of the member's ring-fenced transfer funds; and

(ii) the transferring scheme is aware of any recognised transfer from which those sums or assets are derived,

that there was such a recognised transfer and, where ... known, the date of that transfer and the date it was requested.

(d) whether the overseas transfer charge arises on the transfer and, if so, whether under section 244AC or section 244IA;

(e) if the charge does arise on the transfer—

(i) the transferred value of the transfer, and

(ii) the amount in respect of the charge deducted by the scheme manager from the transfer;

(f) if the transfer is excluded from the charge—

(i) the reason for its exclusion, and

(ii) where section 244G(2)(a) or (b) (charge paid on earlier transfer) is the reason for its exclusion, the date of the earlier transfer on which the charge was paid and the amount of charge paid on that earlier transfer; ...

(fa) whether the transfer is a transfer of the kind mentioned in section 244IA(1)(a) and, if so, the amount of the member’s overseas transfer allowance used up by the transfer, and

(g) the relevant period for the transfer (see the definition of “the relevant period” the relevant period” in section 244AB(1)).

(3) The requirements in paragraph (2) must be complied with before the end of 91 days beginning with the date of the transfer.

(4) In paragraph (2)(c)(ii) the sums or assets are “derived” from a recognised transfer regardless of whether those sums or assets are also derived from one or more relevant transfers which took place after the date of that recognised transfer.

Information – cessation of QROPS

Information - changes, completion or correction

Notice in cases of serious prejudice to proper assessment or collection of tax

Application and modification of the penalty provisions in Part 7 of Schedule 36 to the Finance Act 2008

Information provided by member to QROPS: onward transfers

3AE

(1) Paragraph (4) applies where a member of a QROPS or former QROPS makes a request to the scheme manager to make an onward transfer to a QROPS.

(2) But paragraph (4) does not apply if—

(a) the transfer will be excluded from the overseas transfer charge by section 244G, or

(b) the transfer will take place after the end of the relevant period (see the definition of “the relevant period” in section 244AB(1)) for what would be the original transfer in relation to the requested onward transfer.

(3) In this regulation “original transfer”, in relation to an onward transfer, has the meaning given by section 244AB(1) .

(4) The member must provide to the scheme manager—

(a) the member's name, date of birth and principal residential address,

(b) if the member is not UK resident for income tax purposes, the date when the member last ceased to be UK resident for those purposes,

(i) aged under 16, or

(ii) a citizen of a country outside the United Kingdom who is not resident in the United Kingdom,

the member’s National Insurance number, or a statement that they do not have one,

(d) the name and address of the QROPS to which the transfer is to be made,

(e) the country or territory under the law of which that QROPS is established and regulated,

(f) the reference number, if any, given by the Commissioners for that QROPS,

(g) whether the member knows for certain that the transfer would be excluded from the overseas transfer charge by one of sections 244D, 244E and 244F, and if the member does know that for certain—

(i) the section concerned (if known),

(ii) the name and address of the member's employer whose connection with the QROPS gives rise to exclusion of the transfer from the charge,

(iii) the member's job title as an employee of that employer,

(iv) the date the member's employment with that employer began, and

(v) if known, that employer's tax reference for that employment, ...

(ga) the amount of the member’s overseas transfer allowance that is available at the time the information specified in this paragraph is provided, and

(h) the member's acknowledgement in writing that the member—

(i) is aware that an onward transfer to a qualifying recognised overseas pension scheme may give rise to a liability to overseas transfer charge, and

(ii) is aware of the circumstances in which liability arises, in which liability is excluded from the outset and in which liability is excluded only if conditions continue to be met over a period of time.

(5) The information specified in paragraph (4) must be provided within 60 days beginning with the day the transfer request is made.

(6) The scheme manager must send the member notification of the requirements specified in this regulation within 30 days beginning with that day.

Information provided by member to QROPS: inward and outward transfers

3AF

(1) Paragraph (2) applies where—

(a) a recognised transfer or onward transfer is made to a QROPS, or an onward transfer is made by a QROPS or former QROPS, and

(b) either—

(i) the overseas transfer charge arises in the case of the transfer, or

(ii) the transfer is required by section 244B ... to be initially assumed to be excluded from the overseas transfer charge by that section.

(2) Each time during the relevant period for the transfer that the member—

(a) becomes resident in a country or territory, or

(b) ceases to be resident in a country or territory,

the member must, within 60 days after the date that happens, inform the scheme manager of the QROPS or former QROPS that it has happened.

(3) In a case where the 60 days mentioned in paragraph (2) ends with a day earlier than 30 June 2017, paragraph (2) is to be treated as requiring the information to be given no later than 30 June 2017.

Provision of information about liability for overseas transfer charge

3AG

(1) If an onward transfer is made from a QROPS or former QROPS and the overseas transfer charge arises on the transfer, the scheme manager of the QROPS or former QROPS must within 90 days after the date of the transfer provide the member with a notice stating—

(a) the date of the transfer,

(b) that overseas transfer charge arises on the transfer,

(ba) whether the charge arises under section 244AC or section 244IA,

(bb) whether the transfer is a transfer of the kind mentioned in section 244IA(1)(a) and, if so, the amount of the member’s overseas transfer allowance used up by the transfer,

(d) the amount of the charge on the transfer,

(e) whether, and to what extent, the scheme manager has accounted, or intends to account, for the charge, and

(f) where the scheme manager has accounted for the charge, the date the scheme manager did so.

(2) If an onward transfer is made from a QROPS or former QROPS and the transfer is excluded from the overseas transfer charge by or under sections 244B to 244H, the scheme manager of the QROPS or former QROPS must within 90 days after the date of the transfer provide the member with a notice stating—

(a) the date of the transfer,

(b) that the transfer is excluded from the overseas transfer charge,

(d) where that provision is section 244B ...—

(i) when the relevant period for the transfer ends, and

(ii) how the transfer may turn out not to be excluded as a result of the member changing country or territory of residence within the relevant period for the transfer.

(3) Paragraph (4) applies if—

(a) a recognised transfer is made to a QROPS, or

(b) an onward transfer is made by a QROPS or former QROPS.

(4) Where an event occurring before the end of the relevant period for the transfer (see the definition of “the relevant period” in section 244AB(1)) means that the transfer no longer counts as excluded from the overseas transfer charge or that entitlement to repayment under section 244M arises, the scheme manager of the QROPS or former QROPS must, within 90 days after the date the scheme manager is notified of the event, provide the member with a notice stating—

(a) the amount of overseas transfer charge on the transfer,

(b) whether, and to what extent, the scheme manager has accounted, or intends to account, for the charge, and

(5) Paragraph (6) applies if—

(a) a relieved relevant non-UK scheme transfer is made to a QROPS, and

(b) an event occurs before the end of the relevant period for the transfer (see the definition of “the relevant period” in section 244AB(1)) that means that the transfer no longer counts as excluded from the overseas transfer charge or that entitlement to repayment under section 244M arises.

(6) The scheme manager of the QROPS or former QROPS must, within 90 days after the date the scheme manager is notified of the event, provide the member with a notice stating the amount of the overseas transfer charge on the transfer.

Accounting for overseas transfer charge on onward transfers and change in circumstances.

3AH

(1) Paragraph (2) applies where—

(i) overseas transfer charge arises on an onward transfer from a QROPS, or

(ii) overseas transfer charge arises due to a change of circumstances set out in section 244B(2) ...,

(b) the scheme manager has notified HMRC of the transfer or, where applicable, of the event triggering payability of the charge on the transfer, and

(2) The scheme manager must pay the charge to HMRC using the accounting reference.

(3) Payment of the charge is due at the end of the 91 days beginning with the date of issue of the accounting reference.

Assessments of unpaid overseas transfer charge ...

3AI

(1) Where the correct amount of overseas transfer charge due from a scheme manager under regulation 3AH ... has not been paid by the time it is due, an officer of Revenue and Customs must issue an assessment to tax to the scheme manager.

(2) Tax assessed under this regulation is payable within 30 days after the issue of the notice of assessment.

Interest on overdue overseas transfer charge

3AJ

(1) Tax which—

(a) becomes due and payable in accordance with regulation 3AH, or

(b) is assessed under regulation 3AI,

carries interest at the prescribed rate from the due date under regulation 3AH until payment (“the interest period”).

(2) Paragraph (1) applies even if the due date is a non-business day as defined by section 92 of the Bills of Exchange Act 1882.

(3) The “prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 86 of TMA.

(4) Any change made to the prescribed rate during the interest period applies to the unpaid amount from the date of the change.

Adjustments, repayments and interest on overpaid charge

3AK

(1) If the correct tax due under regulation 3AH has not been paid on or before the due date, an officer of Revenue and Customs may make such adjustments or repayments as may be required for securing that the resulting liabilities to tax (including interest on unpaid or overpaid tax) whether of the scheme manager or of any other person are the same as they would have been if the correct tax had been paid.

(2) Tax overpaid which is repaid to the scheme manager or any other person carries interest at the prescribed rate from the later of the due date and the date on which the tax was paid until the date of repayment (“the interest period”).

(3) The “prescribed rate” means the rate applicable under section 178 of the Finance Act 1989 for the purposes of section 824 of the Income and Corporation Taxes Act 1988.

(4) Any change to the prescribed rate during the interest period applies to the overpaid amount from the date of the change.

Claims for repayments of charge on subsequent excluding events

3AL

(1) Repayment under section 244M (repayments of overseas transfer charge) to the scheme manager of a QROPS or former QROPS is conditional on making a claim to HMRC.

(2) Such a claim in respect of overseas transfer charge on a transfer—

(a) must be in writing,

(b) must be made no later than 12 months after the end of the relevant period for the transfer, and

(i) the member's name, date of birth and principal residential address,

(ii) the date of the transfer and, if different, the date of the event triggering payability of the charge on the transfer,

(iii) the date on which the scheme manager accounted for the charge on the transfer,

(iv) why the charge on the transfer has become repayable, ...

(v) the amount in respect of which the claim is made ,

(vi) unless the member is—

(i) aged under 16, or

(ii) a citizen of a country outside the United Kingdom who is not resident in the United Kingdom,

the member’s National Insurance number, or a statement that they do not have one,

(vii) the amount of the transfer, and

(viii) the date during the relevant period for the transfer on which the event giving rise to the exclusion occurred.

Information – cessation of QROPS

Information - changes, completion or correction

Notice in cases of serious prejudice to proper assessment or collection of tax

Application and modification of the penalty provisions in Part 7 of Schedule 36 to the Finance Act 2008

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