Use legal solicitors to avoid misuse of overseas transfer system
Legal Services 09 Dec 2011
People who are planning to emigrate abroad should seek
legal advice to ensure that the transfer of their pension is legal.
The government has revealed a series of new measures to highlight any potential abuse of the qualifying recognised overseas pension scheme (QROPS).
Under the system, pension savers can transfer their pension programme overseas and redeem a lump sum and pension benefits broadly equivalent to the benefits that would have been available to them had they left their pension in the UK.
The changes to the system will come into effect on April 6th 2012 and will demand the transferring saver to provide more detailed information ahead of transfer, the UK scheme to pass the information to HMRC within 30 days of the transfer, and the overseas scheme to report all lump sum payments from the scheme in the ten years following transfer.
Overseas providers are also required to provide more information about their scheme and the individuals involved.
Gareth James, technical marketing manager at A J Bell, stated that it is hoped that the new reporting system will give the HMRC the tools it needs to "immediately identify transfers it suspects are being made for ... inappropriate reasons".
Published by Tessa Jones
