Andrew Williams Posted December 6, 2016 Report Share Posted December 6, 2016 HMRC are consulting on changes to the time period that a member payment charge applies for unauthorised payments from Relevant Non UK Schemes (RNUKS - this would include an Australian QROPS (former QROPS)) which if approved will come into effect from April 2017. Without doubt great care should be taken when considering transferring or withdrawing benefits from a QROPS (former QROPS). Here are the proposals: Currently UK tax can arise on payments, including deemed payments, made from a foreign pension scheme that has had UK tax relief (a relevant non-UK scheme) under the following provisions: · the member payment charges under Schedule 34 Finance Act 2004 · the taxable property charges under Schedule 34 Finance Act 2004 The member payment charges Certain payments from a relevant non-UK scheme (RNUKS) are taxable if the member is UK resident when the payment is made or has been UK resident in any one of the previous five tax years. Guidance on the definition of an RNUKS and when UK tax charges apply can be found in the Pensions Tax Manual at PTM113210. The time limit during which the member payment provisions apply will be extended so that the member payment charges will apply if, at the time of the payment, the member is UK resident or has been resident in any one of the previous 10 tax years. The extended time limit will apply to: · transfers made from a registered pension scheme on or after 6 April 2017 · pension inputs into an overseas scheme on or after 6 April 2017 that have benefitted from UK tax relief. Quote Link to comment Share on other sites More sharing options...
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