PTM103150 - Transfers: transfers to a QROPS: scheme manager actions – after the transfer

Glossary

PTM000001

After the transfer the scheme manager of a qualifying recognised overseas pension scheme (QROPS) or former QROPS, or relieved relevant non-UK scheme may have to report information to HMRC, the scheme manager of the receiving QROPS and the member.

Reporting the transfer to HMRC
Paying an overseas transfer charge
Tell HMRC about a change of the member’s address
Tell HMRC that an overseas transfer charge is now due
Tell HMRC that an overseas transfer charge is repayable
Give a transfer statement to the receiving QROPS scheme manager
Give the member a transfer notice
Tell the member if an overseas transfer charge arises due to a change in circumstances
Tell the member if a repayment of an overseas transfer charge becomes due
Tell the receiving scheme manager that a transfer is a block transfer from a relieved relevant non-UK scheme

Reporting the transfer to HMRC

Regulation 3(2) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

Whether or not a transfer is subject to an overseas transfer charge, it is a payment from the scheme and as such must be reported to HMRC within 90 days of the transfer.  Form APSS 253 can be used for this. 

Go to PTM112700 for full details of this reporting requirement, including guidance on when scheme managers no longer need to report payments.

HMRC needs this information to identify if a transfer is subject to an overseas transfer charge and to issue payment details to the scheme manager.

If a scheme manager fails to report transfers to HMRC as required, HMRC can exclude the scheme from being a QROPS – see PTM112500.

Paying an overseas transfer charge

Regulation 3AH The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

When HMRC receives the report of the transfer and this indicates that an overseas transfer charge is due, they will issue the scheme manager with an accounting reference and bank details for the scheme manager to use to pay an overseas transfer charge due.

The tax is due to be paid 90 days following the date that HMRC issues the accounting reference details.  So, if the accounting reference is issued on 1 March, the deadline for payment is 30 May.

Regulations 3AI and 3AJ The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

If the scheme manager does not pay the overseas transfer charge by the due date:

  • interest will be charged on the amount outstanding from the due date until the date it is paid, and
  • HMRC will issue a notice of assessment to the scheme manager for the charge.

Tell HMRC about a change of the member’s address

Regulation 3(2C) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

Where a scheme manager has received a recognised transfer into the scheme or made an onward transfer from the scheme, the scheme manager needs to tell HMRC when the member changes their residential address within the relevant period (see PTM102200).  They need to do this if the new residential address is neither:

  • in the same country or territory as that in which their scheme is established, nor
  • in a country within the EEA (for transfers requested before 30 October 2024 and completed before 30 April 2025 only).

The notification should be made to HMRC within three months of the scheme manager becoming aware of the change of the member’s residential address.

Tell HMRC that an overseas transfer charge is now due

Regulation 3(2B) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

Scheme managers are required to tell HMRC if their scheme received a recognised transfer or onward transfer that was not subject to an overseas transfer charge and, due to a change of circumstances, the tax charge is now due.

They must do this within 90 days of being told of the change of residence that results in an overseas transfer charge now being due. 

PTM102400 provides guidance on the information that must be reported to HMRC.

Tell HMRC that an overseas transfer charge is repayable

Regulation 3(2B) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

The scheme manager must tell HMRC when an overseas transfer charge under section 244AC becomes repayable due to a change in circumstances.

They must do this within 90 days of being told of the event that results in the overseas transfer charge now being repayable. 

Go to PTM102600 for further details of this reporting requirement.

Give a transfer statement to the receiving QROPS scheme manager

Regulation 3AD The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

Where a transfer from a QROPS or former QROPS to another QROPS includes all or part of a member’s:

  • UK tax-relieved fund,
  • relevant transfer fund or
  • ring-fenced transfer fund

the scheme manager must give the receiving scheme manager a transfer statement.

Go to PTM113230 to see an explanation of these terms and how to calculate the value of these funds.

This information must be provided before the end of 91 days beginning with the date of the transfer out of the scheme.

The transfer statement must include information relating to:

  • the value of the member’s funds
  • the transfer date(s)
  • whether an overseas transfer charge arises on the transfer and, if so
  • whether the charge arises under section 244AC or 244IA, and 
  • by how much the transfer has reduced the member's overseas transfer allowance (see PTM102200).

Note that section 244A(6) Finance Act 2004 provides that if a transfer is made in respect of more than one ‘original transfer’ then each ‘onward transfer’ is to be treated as a separate transfer for the purposes of the overseas transfer charge.  PTM102200 provides guidance on the meaning of the terms ‘original transfer’ and ‘onward transfer’.  This means that where a transfer payment involves more than one ‘original transfer’, a separate report of the ‘relevant period’, ‘transferred value’, tax due etc. is needed for each ‘original transfer’.

Value of the member’s funds

The transfer statement should include the following fund values:

  • the total value of the member's UK tax-relieved fund included in the transfer
  • the value of so much of a member’s UK tax-relieved funds that was built up before 9 March 2017
  • the value of the member's relevant transfer fund included in the transfer
  • the value of each of the member's ring-fenced transfer fund(s) included in the transfer.

Transfer dates

Where the transfer includes part or all of the member's relevant transfer fund or any of the member’s ring-fenced transfer funds, and the scheme is aware of any recognised transfer from which the transfer derived, the transfer statement should include:

  • the fact that there was a recognised transfer,
  • the date of the recognised transfer, if known, and
  • the date the recognised transfer was requested, if known.

The receiving scheme manager needs this information to determine whether or not, and to what extent, the transferred funds will be a relevant transfer fund or ring-fenced transfer fund under their scheme.  This information is also used to identify the key date for a ring-fenced transfer fund.

Application of overseas transfer charge

To enable the receiving scheme manager to determine if a future transfer from their scheme could be subject to an overseas transfer charge, the transferring scheme manager also needs to provide the following information:

  • whether or not an overseas transfer charge arises on the transfer, and
  • the ‘relevant period’ (see PTM102200 for definition) for the transfer.

If an overseas transfer charge applies, the transferring scheme manager needs to tell the new scheme manager:

  • the ‘transferred value’ (see PTM102500),
  • whether the charge arises under section 244AC or 244IA
  • by how much the transfer reduces the member's overseas transfer allowance (see PTM102200), and
  • the amount of tax the scheme manager deducted from the proposed transfer before the transfer was made.

If the transfer is excluded from an overseas transfer charge under section 244AC, the transferring scheme manager needs to tell the new scheme manager:

  • the reason why the transfer is excluded from the overseas transfer charge (see PTM102300), and
  • if the reason the overseas transfer charge does not apply is because the tax was paid on an earlier transfer of those funds (see PTM102300), the date of that earlier chargeable transfer and the amount of tax paid on that transfer.

This passing of information between scheme managers enables the correct operation of the QROPS system and tax rules.  If a QROPS scheme manager fails to comply with these information requirements, HMRC can exclude the scheme from being a QROPS (see PTM112500).

Give the member a transfer notice

Regulation 3AG(1) and (2) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

Where an onward transfer is made during the relevant period (see PTM102200), the scheme manager must give the member a transfer notice within 90 days of the transfer.  The information to be included in the transfer notice depends on whether or not any part of the transfer was subject to an overseas transfer charge.

If the transfer is subject to an overseas transfer charge, the scheme manager must give the following information to the member:

  • the date of the transfer
  • the fact that an overseas transfer charge applies to the transfer
  • whether the charge arises under section 244AC or 244IA,
  • if the original transfer was a block transfer from a relieved relevant non-UK scheme, by how much the onward transfer has reduced the member's overseas transfer allowance 
  • the ‘transferred value’ of the transfer (see PTM102500)
  • the amount of the charge on the transfer
  • whether, or to what extent, the scheme manager has accounted for the tax to HMRC or intends to do so, and
  • if the scheme manager has already accounted for tax to HMRC the date they did so.

If the transfer is excluded from an overseas transfer charge under section 244AC, the transfer notice should contain the following information:

  • the date of the transfer
  • the fact that the transfer is excluded from the overseas transfer charge, and
  • the reason why the transfer is excluded from the overseas transfer charge.

If the transfer is not chargeable because the member and scheme are in the same country, or (for transfers requested before 30 October 2024 and completed before 30 April 2025 only) because the member is resident in the UK or the EEA and the scheme is within the EEA or Gibraltar, the scheme manager also needs to tell the member:

  • when the ‘relevant period’ for the transfer ends (see PTM102200), and
  • how the transfer may become chargeable if the member changes their country or territory of residence within the relevant period for the transfer.

Tell the member if an overseas transfer charge arises due to a change in circumstances

Regulation 3AG(4) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

A recognised transfer or a relieved relevant non-UK scheme transfer into the QROPS or an onward transfer out of the scheme may initially have been excluded from an overseas transfer charge under section 244AC and then the tax charge arises due to a change of circumstances after the transfer.  PTM102400 explains when this may happen.

Where this occurs the scheme manager must give the member a notice about this within 90 days after the date of being notified of the event causing the overseas transfer charge to arise.  The notice must include the following information:

  • the amount of the overseas transfer charge
  • if, and to what extent, the scheme manager has accounted for, or intends to account for, the tax to HMRC, and
  • where the scheme manager has already accounted for the tax to HMRC, the date they paid the tax.

Tell the member if a repayment of the overseas transfer charge becomes due

Regulation 3AG(4) The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

A recognised transfer or relieved relevant non-UK scheme transfer into the QROPS, or an onward transfer out of the scheme, may initially have been subject to an overseas transfer charge under section 244AC and then, due to a change of circumstance, the tax has now become repayable.  PTM102600 explains when this may happen. 

Where this occurs the scheme manager must give the member a notice about this within 90 days after the date of being notified of the event causing the overseas transfer charge to be repayable.  The notice must include the following information:

  • the amount of the overseas transfer charge
  • if, and to what extent, the scheme manager has accounted for, or intends to account for, the tax to HMRC, and
  • where the scheme manager has already accounted for the tax to HMRC, the date they paid the tax.

Tell the receiving scheme manager that a transfer is a block transfer from a relieved relevant non-UK scheme

Section 244ID Finance Act 2004

Where a relieved relevant non-UK scheme makes a block transfer to a QROPS, the scheme manager of the transferring scheme must provide the following information to the scheme manager of the receiving QROPS:

  • that this a block transfer that is an 'original transfer'
  • that an onward transfer may give rise to an overseas transfer charge under section 244IA
  • the date of the transfer, and 
  • the transferred value.

The transferring scheme manager must provide this information within 91 days beginning with the date of the transfer. See PTM102200 for guidance on the meaning of the terms 'original transfer', 'onward transfer', and 'block transfer'.