According to new reports, HMRC are to be more stringent with monitoring rogue QROPS providers who are giving clients a raw deal.
QROPS are a wholly legitimate and approved offshore pension transfer that allow British expatriates to enjoy considerable tax benefits on their pensions once they move abroad.
The problems with QROPS lies not with the transfer itself, but with cowboy providers who tout QROPS transfers that are not actually approved by HMRC.
An internal HMRC note discovered by Money Marketing has apparently described the existence of a new team that has been created to find QROPS abusers.
Despite giving no official confirmation of the team, spokesman for HMRC said: “The Anti Fraud Unit (AFU) within Pension Scheme Services has been set up to counter evasion, avoidance and general abuse around pension schemes, particularly targeting those who act outside the legislation. The unit works closely with other compliance teams within HMRC and with regulatory bodies in tackling specific cases.”
In recent years the use of QROPS have surged in popularity amongst UK expats simply due to the fantastic range of benefits that come with the pension transfer. It's important to note that this HMRC team is in no way against QROPS, simply unauthorised providers.
For this reason it is important that a when transferring into a QROPS, you do so through a fully-approved provider. Speak to a recommended IFA today and learn more about legitimate QROPS.