RPSM14101070 - Technical Pages: Transfers: Recognised transfers from registered pension schemes: Reporting requirements on transfer to a qualifying recognised overseas pension scheme
This guidance only reflects the tax rules that applied up to and including 5th April 2012. See RPSM13104000 for guidance on the tax rules applying to all QROPS after 5 April 2012.
The scheme administrator of a registered pension scheme must report to HMRC any transfer from their scheme to a qualifying recognised overseas pension scheme using the online event report. See RPSM12301080 for further guidance on the Event Report. The details to be provided on this APSS 300 form are set out in The Registered Pension Schemes (Provision of Information) Regulations 2006 (SI 2006/567).
Qualifying recognised overseas pension scheme
As explained in RPSM14101050, under section 169 the scheme manager of a recognised overseas pension scheme must have undertaken to comply with the information requirements imposed under regulation 3 of The Pension Schemes (Information Requirements - Qualifying Overseas Schemes, Qualifying Overseas Schemes and Corresponding Relief) Regulations 2006 (SI 2006/208) if the scheme is to be a qualifying recognised overseas pension scheme.
One of those information requirements is that the scheme manager notifies HMRC when they make a payment, or are treated under certain provisions as making a payment, in respect of a relevant member. However, the scheme manager does not have to notify HMRC if the relevant member is a person to whom the member payment provisions do not apply under paragraph 2 of Schedule 34 (RPSM13102120). The member payment provisions do not apply unless the member:
- is resident in the UK when the payment is made (or treated as made), or
- although not resident in the UK at that time, has been resident in the UK earlier in the tax year in which the payment is made (or treated as made) or in any of the five tax years immediately preceding that tax year.
A payment includes a transfer from the scheme. The provisions under which a scheme manager is treated as making a payment are sections 172 to 174A, paragraph 2A of Schedule 28 and paragraph 3A of Schedule 29. Guidance on those deemed payments is provided in RPSM09100170.
A payment to a transfer member has to be notified to HMRC regardless of whether or not they have been non-resident for more than five tax years if it is deemed to have been made from their taxable asset transfer fund (see RPSM13102180).
A relevant member is one in respect of whom there is a relevant transfer fund within the meaning of The Pension Schemes (Application of UK Provisions to Relevant non-UK Schemes) Regulations 2006 [SI 2006/207]. Broadly speaking, a member will have a relevant transfer fund within the scheme if they have transferred sums or assets into it that relate to UK tax-relieved contributions. That includes transfers from registered pension schemes and certain transfers from non-UK schemes that are not registered pension schemes. Further details are provided at RPSM13102170.
The manager of a qualifying recognised overseas pension scheme that receives a transfer from another overseas pension scheme will need to check whether or not the transferring member has a UK tax-relieved fund (see RPSM13102150) or a relevant transfer fund in the transferring scheme in order to establish if HMRC will have to be provided with information about payments made in respect of the individual. It would be reasonable for the scheme manager to ask the individual to declare whether or not the transferred funds include any amounts that have received UK tax relief or have originated in a UK registered pension scheme. If the answer is "yes" then more detailed questions would need to be posed to establish if the individual will have a relevant transfer fund in the receiving scheme.
The scheme manager must provide HMRC with the following information:
- the name and address of the relevant member, and
- the date, amount and nature of the payment.
This information must be sent to
|Pension Schemes Services|
|HM Revenue & Customs|
|Castle Meadow Road|
|Nottingham NG2 1BD|
The scheme manager can use form APSS 253 to provide notification.
Where a non-pension payment such as a lump sum or a transfer is made, the scheme manager must provide the information to HMRC by 31 January following the end of the tax year in which each payment is made. Where a pension payment is made, the scheme manager must provide the information by 31 January following the end of the tax year in which the first payment is made, but it is only necessary to do this in respect of the first such payment to any individual.
Exceptionally, HMRC may require the information to be provided within 30 days of the issue of a notice to the scheme. That can happen if HMRC has reasonable grounds for believing that the scheme has failed, or may fail, to comply with any of the information requirements and that such failure is likely to have led, or to lead, to serious prejudice to the proper assessment or collection of tax.