The following Employment Tax guidance note Produced by Tolley in association with John Hayward provides comprehensive and up to date tax information covering:
Other guidance notes in this sub-topic have looked at how transfers of UK tax-relieved funds may be made to Qualifying Recognised Overseas Pension Schemes (QROPS) and how contributions can be made to other forms of overseas pension schemes including Qualifying Non-UK Pension Schemes (QNUPS). This guidance note focuses on the tax treatment of benefits from a QROPS or QNUPS.
It would be logical to think that the basis on which benefits can be taken from a non-UK pension scheme would be dependent upon the rules of that particular scheme and the legislation of the jurisdiction in which the pension scheme is arranged.
However, in relation to transfers of UK tax-relieved pension funds to a QROPS, in order for the overseas scheme to be recognised by HMRC as a QROPS, certain restrictions must be accepted. These restrictions include provisions on how the overseas pension scheme recognised as a QROPS may use UK tax-relieved funds transferred into it for the purpose of providing benefits.
The structure of an overseas pension scheme, which enables such a scheme to be regarded as a QNUPS, has the added benefit of exempting assets held within it following the member’s death from UK inheritance tax.
In order to satisfy the requirements to be regarded as a QNUPS, there are rules in terms of benefit provision.
The way the legislation associated with QROPS works means that for the first five complete and consecutive years of non-UK residence, the fund held within a QROPS must be used to provide benefits in the same way as would be permitted under UK legislation. This is because the fund effectively operates as if it was a UK-registered pension scheme. If this key condition is not adhered to then tax charges will arise and the scheme itself may be stripped of its QROPS status.
As a consequence, benefits during this period may not be provided from the QROPS befor
**Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason.
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login
IntroductionSubsistence is the amount incurred as a consequence of business travel. Typically it relates to accommodation and meal costs incurred. These amounts are allowed because they are associated with the necessary travel. See the Travel expenses guidance note for more information of when
This guidance note considers the capital gains tax implications where shares are sold in exchange for new shares.The consideration paid by a purchasing company to the shareholder(s) for their shares in a target company could be in the form of either:•new shares in the vendor in exchange for shares
Class 1 and Class 1AClass 1 and Class 1A are the categories of NIC that can be charged on expenses reimbursed and benefits provided to employees. These classes are mutually exclusive. A benefit cannot be subject to both Class 1 and Class 1A NIC. Three requirements must be met before Class 1A NIC is
Preparatory workBefore completing the Inheritance Tax account for submission to HMRC, the practitioner needs to undertake a comprehensive review of the extent of the estate and its proposed distribution. The work required leading up to the submission of the account is described in detail in the
To view our latest tax guidance content, sign in to Tolley Guidance or register for a free trial.