Qualifying Recognised Overseas Pension Schemes offshore annuity suppliers and advisors are steeling themselves for an onslaught from the United Kingdom tax man over dodgy schemes when a threatened appeal case is laid to rest.
HM Cash and Customs is assured about winning an appeal mounted by Equity Trust to try and overturn a High Court ruling that their QROPS in Singapore scheme was illegal.
Suppliers and counsellors expect HMRC is prepared to neat up the process of a number of other QROPS jurisdictions suspected of breaking or seriously bending the guidelines as well - once the dust has settled on the appeal and the tax man knows any enforcement action is backed in law.
HMRC is staying silent about intentions, but industry insiders say the tax man won't allow any new Hong Kong QROPS schemes after taking recent action to plug a tax loophole.
B and B QROPS
Next on the list are 'smash and grab ' or B and B ' QROPS pension schemes promoted in some financial jurisdictions that let investors switch their money from the UK or another Qualifying Recognised Overseas Pension Schemes, and wash the money through for nearly fast withdrawal.
Advisors and QROPS suppliers are charging big charges for this 'facility ', which goes against the essence of QROPS transfer rules.
The issue for expats wanting to transfer their UK retirement funds in to a QROPS is picking a reliable and strong scheme that fulfills the rules - going with one the doesn't can suggest a fine of 55% or even more of the value of any annuity investment.
Many advisors are puzzled by the QROPS list released by HMRC each month that list around 2,500 offshore annuity schemes.
This list does not endorse or approve any QROPS scheme, but merely records the scheme directors have self-certify their allowance meets Qualifying Recognised Overseas Pension Schemes rules.
International QROPS regulator
This is the problem for real backers and providers - HMRC can close a plan at any time and without any warning and no one can tell if the provider went along with the rules.
A shift in policy is needed that gives the Qualifying Recognised Overseas Pension Schemes industry a world regulatory body accepted by HMRC that sets an amount of compliance and service that any credible scheme should meet.
Then, investors would feel safe, particularly if the scheme involved some type of bond or client money protection scheme.
HM Cash and Customs is assured about winning an appeal mounted by Equity Trust to try and overturn a High Court ruling that their QROPS in Singapore scheme was illegal.
Suppliers and counsellors expect HMRC is prepared to neat up the process of a number of other QROPS jurisdictions suspected of breaking or seriously bending the guidelines as well - once the dust has settled on the appeal and the tax man knows any enforcement action is backed in law.
HMRC is staying silent about intentions, but industry insiders say the tax man won't allow any new Hong Kong QROPS schemes after taking recent action to plug a tax loophole.
B and B QROPS
Next on the list are 'smash and grab ' or B and B ' QROPS pension schemes promoted in some financial jurisdictions that let investors switch their money from the UK or another Qualifying Recognised Overseas Pension Schemes, and wash the money through for nearly fast withdrawal.
Advisors and QROPS suppliers are charging big charges for this 'facility ', which goes against the essence of QROPS transfer rules.
The issue for expats wanting to transfer their UK retirement funds in to a QROPS is picking a reliable and strong scheme that fulfills the rules - going with one the doesn't can suggest a fine of 55% or even more of the value of any annuity investment.
Many advisors are puzzled by the QROPS list released by HMRC each month that list around 2,500 offshore annuity schemes.
This list does not endorse or approve any QROPS scheme, but merely records the scheme directors have self-certify their allowance meets Qualifying Recognised Overseas Pension Schemes rules.
International QROPS regulator
This is the problem for real backers and providers - HMRC can close a plan at any time and without any warning and no one can tell if the provider went along with the rules.
A shift in policy is needed that gives the Qualifying Recognised Overseas Pension Schemes industry a world regulatory body accepted by HMRC that sets an amount of compliance and service that any credible scheme should meet.
Then, investors would feel safe, particularly if the scheme involved some type of bond or client money protection scheme.
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