HMRC's new QROPS Explanatory Note

Nervousness surrounding QROPS providers continues as HMRC has published an explanatory note intimating that they are changing the premise of Qualifying Recognised Overseas Pensions Schemes. In the note they have suggested that QROPS should only be used by “migrant workers” wishing to transfer their pensions rather than what it believes is currently happening whereby UK pension holders who have built up their fund (to a maximum of £1.5million) in a tax free environment, will then move it overseas to a tax efficient environment where they will then no longer be taxed on the benefits.