|Pension schemes newsletter
A new pension schemes newsletter has been published by HMRC. The latest edition of the newsletter includes a summary of changes announced as part of the recent spring Budget 2017.
This includes the following:
- ROPS. A number of changes to the tax treatment of transfers of tax relieved pension savings to QROPS with effect from 9 March 2017. The main change is the introduction of a 25% overseas transfer charge on certain transfers. This move represents a major crackdown on the use of QROPS as a tax saving measure.
- Tax treatment of foreign pensions. A number of changes to the tax treatment of foreign pensions were announced. These changes will address some inconsistencies in the tax treatment of UK and foreign pension savings and will bring foreign pensions and lump sums paid to UK residents into tax.
- Money purchase annual allowance. It was confirmed as part of the Budget measures that the money purchase annual allowance that applies in respect of money purchase pension contributions is to be reduced from £10,000 to £4,000 from 6 April 2017.
- A full response to the government consultation on pension scams will be published later this year.
- The newsletter also covered some other topics including guidance on the reporting of wholly non-taxable death benefits through RTI, a reminder that a number of Relief at Source annual returns remain outstanding and the change of filing deadline for annual return of individual information for 2016-17.