From 16th December, 2013 HM Revenue and Customs is launching a new online service for overseas QROPS funds. This will enable new QROPS and reports for existing QROPS to be sent electronically. It will still be possible to submit paper forms.
There are a considerable number of changes happening in the UK pension environment. The Lifetime Allowance (LTA) similar to our defunct RBL system is reducing in 2014-15 from £1.5m to £1.25m. There are opportunities to protect LTA levels at higher amount by primary enhanced or fixed protection.
The Finance Act 2013 made a number of changes to the pension tax legislation. There are provisions to restrict attempts to sidestep the effect of the annual allowance limit by contributions to family members. The concessional contribution cap - called the annual allowance in the UK - has been reduced to £40,000 for 2014-15 and subsequent years. The maximum amount a pensioner can withdraw from a drawdown arrangement has been increased from 100% to 120% of an equivalent annuity, to apply from 26th March, 2013. Contracting out through a defined contribution scheme has been abolished from 6th April, 2012.
QROPS have been made a pension matter in relation to HMRC's information and inspection powers. HMRC has been empowered to make regulations to introduce a system of renotification for QROPS, to require former QROPS to report information and to introduce a "penalties regime" for former QROPS that do not meet their obligations. The two major forms (i.e. APSS 262 and 263) have been changed. A QROPS Scheme Manager ID is being introduced.
NetActuary is registering with HMRC as a pensioner's practitioner in order to be able to use the Pension Schemes Online System.
The NetActuary Team