One of the main frictions between QROPS backers and the UK taxman is trying trying to take money out of a QROPS offshore pension against the guidelines.
Some unscrupulous counsellors became wealthy setting up 'grey area ' QROPS and then leaving their customers with large financial penalties when their cash withdrawal method backfired.
HMRC has a backroom team of tax consultants and barristers brushing tax laws, treaties and agreements line-by-line to plug openings in the rules that some QROPS speculators try and exploit.
The current further clause in the Finance Act is the latest example.
Loose wording in a double taxation agreement with Hong Kong could have let some UK resident Qualifying Recognised Overseas Pension Schemes investors transfer cash in to a QROPS, take the cash as money and then reinvest back in to Britain to gain additional tax allowances.
QROPS rules say that any unauthorised withdrawal is penalised at a tax charge of 55% on the amount of the first fund transfer.
An unapproved withdrawal includes taking lots of cash from a QROPS or drawing down money before the scheme's retirement age.
Many qrops pension investors do not realise that tax penalties are retrospective. Simply because the taxman does not chase someone who has broken the rules for a year or 2 does not necessarily imply the action has gone unnoticed.
HMRC has sent out a clear message that attempts to weaken QROPS rules may not be put up with. 1 or 2 schemes have closed and Singapore has lost status as a tax jurisdiction.
Tax-busting Qualifying Recognised Overseas Pension Schemes offers may seem too good to be true with a fervent advisor making the monetary rewards sound out of this world.
That is doubtless because they are , and nave or gullible investors won't find out the taxman wants his slice of the qrops pension pie long after the consultant has fled the scene with a wad of commission.
Tracking down the right advice about a QROPS transfer is important.
Some unscrupulous counsellors became wealthy setting up 'grey area ' QROPS and then leaving their customers with large financial penalties when their cash withdrawal method backfired.
HMRC has a backroom team of tax consultants and barristers brushing tax laws, treaties and agreements line-by-line to plug openings in the rules that some QROPS speculators try and exploit.
The current further clause in the Finance Act is the latest example.
Loose wording in a double taxation agreement with Hong Kong could have let some UK resident Qualifying Recognised Overseas Pension Schemes investors transfer cash in to a QROPS, take the cash as money and then reinvest back in to Britain to gain additional tax allowances.
QROPS rules say that any unauthorised withdrawal is penalised at a tax charge of 55% on the amount of the first fund transfer.
An unapproved withdrawal includes taking lots of cash from a QROPS or drawing down money before the scheme's retirement age.
Many qrops pension investors do not realise that tax penalties are retrospective. Simply because the taxman does not chase someone who has broken the rules for a year or 2 does not necessarily imply the action has gone unnoticed.
HMRC has sent out a clear message that attempts to weaken QROPS rules may not be put up with. 1 or 2 schemes have closed and Singapore has lost status as a tax jurisdiction.
Tax-busting Qualifying Recognised Overseas Pension Schemes offers may seem too good to be true with a fervent advisor making the monetary rewards sound out of this world.
That is doubtless because they are , and nave or gullible investors won't find out the taxman wants his slice of the qrops pension pie long after the consultant has fled the scene with a wad of commission.
Tracking down the right advice about a QROPS transfer is important.
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