The Revenue said the list of Recognised Overseas Pensions Schemes (ROPS), which includes all overseas schemes, will return on 1 July, and will look “significantly different”.
“From 17 June 2015 the list of ROPS notifications will be temporarily suspended for a short period to allow the list to be reformatted. The ROPS notifications list will be available again from 1 July 2015. Please note that the reformatted list will look significantly different,” it said.
Senior figures from the Qualifying Recognised Overseas Pensions Schemes (QROPS) Industry said many schemes are likely be omitted by the Revenue as it follows up a letter sent in April requiring scheme operators to confirm they meet QROPS requirements by 5 April, or face suspension.
Transfers before the 6 April risk of a 55% unauthorised payment charge.
In the UK, QROPS may only pay benefits before the age of 55 in the event of serious ill health, meaning schemes in Australia, Ireland, and New Zealand do not meet its requirements as they also allow payments due to “serious financial hardship”.
Missing
Mark Hattersley, business development manager at the NZ Endeavour Fund, said that while KiwiSaver schemes have already confirmed that they cease to comply, causing the New Zealand-based pension schemes on the list to drop from 57 to 34, the same may not apply to Australian schemes.
“One suspects that the current 45 pages given to Australian superannuation schemes will be largely, if not totally, missing, at least until they sort out the issues within each scheme’s governing documentation,” he said. “I daresay there will be other schemes around the world who will come off the list.
“I think we have to expect a large number of Australian schemes will re-emerge in the future, given the fact that so many Brits leave the UK for Australia. Also, the current tax regime in Australia that seeks to tax pension funds left overseas in a more detrimental fashion than domestic.”
Effectively dead
Similarly, Geraint Davies, managing director at Montfort International, said the Australian QROPS market could “effectively be dead”, following the 17 June deadline for schemes to confirm their QROPS status.
“The Australian marketplace appears to have been knocked unconscious. We have now entered an era of high quality advice, and a sweep-up of the poor advice that was given before 5 April appears ready to begin,” he said.
“I believe there are two reasons why HMRC has decided to suspend the list. One is to send a message to UK schemes, telling them they need to wake up and check whether these schemes meet the ROPS conditions. Also, it is telling overseas schemes that being on the list does not make you a QROPS, and if you haven’t responded to HMRC about your QROPS by 17June then you are suspended.”
He said he believes that UK advisers with the appropriate permissions will soon be required at every single pension transfer for a non-UK resident.
