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

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,

• (c) 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,

• (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,

• (c) the transferred value of 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,

• (c) the provision by reason of which the transfer is excluded, and

• (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

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

• (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—

• (a)

• (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

• (c) HMRC have provided the scheme manager with an accounting reference for paying the charge on the transfer.

• (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

• (c) must provide the following information—

• (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