HMRC Qrops defeat heralds tighter rules for overseas pension transfers

The recent defeat by HMRC to levy a 55% tax on investors in a delisted Qualifying Recognised Overseas Pension Scheme (QROPS) is likely to see a further tightening up on overseas pension transfer rules.

The legal battle, which saw HMRC withdraw and cancel any tax demands, was based on the fact that at the time of the transfers QROPS was still on the HMRC authorised list. Investors who transferred their UK pensions to a Singapore-based QROPS called ROSIIP in between 2006 and 2008 therefore therefore argued they should be allowed to avoid paying additional tax. They argued the subsequent ‘delisting’ of the scheme which made transfers unauthorised and subject to a 55% tax levy was therefore unfair. The HMRC climbdown has been hailed today as a “victory for common sense” by Nigel Gree...