Q&As

Are transfers to Gibraltar-based QROPS still exempt from the overseas transfer charge during the implementation period?

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Published on LexisPSL on 02/03/2020

The following Pensions Q&A provides comprehensive and up to date legal information covering:

  • Are transfers to Gibraltar-based QROPS still exempt from the overseas transfer charge during the implementation period?

In broad terms, the overseas transfer charge does not apply if, among other things:

  1. the Qualifying Recognised Overseas Pension Schemes (QROPS) is established within the European Economic Area (EEA), and

  2. the member is resident within the EEA and there is no onward transfer

In February 2020, HMRC updated its guidance at PTM102300 to indicate that, despite exit day occurring on 11 pm on 31 January 2020 and the UK being in the Brexit implementation period:

  1. the reference to the ‘EEA’ in the first bullet point (ie the EEA QROPS establishment reference) still covers QROPSs established in the EEA or Gibraltar, and

  2. the EEA reference in the second bullet point (the EEA member residency reference) covers residency in the EEA, the UK or Gibraltar

Similar updates have been made by HMRC to PTM102400. HMRC’s view is therefore that transfers to Gibraltar-based QRO

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