Miscellaneous Aspects Flashcards
How much and who pays an unauthorised payment charge?
40% for the recipient or scheme member for holding investments not permitted.
What happens when unauthorised payments exceed 25% of a fund?
15% surcharge added to the unauthorised payment payment charge of 40%
Who pays the unauthorised payment surcharge?
The member if the payment was made to them.
The employer, if payment is an employer payment
What is charged to a scheme if at least one unauthorised payment has been made?
Usually, 15% of the unauthorised payments made.
How much is a scheme taxed on assets after loosing it’s registered status?
40% flat tax
What is RNUKS?
Relevant Non UK Schemes
Includes QROPS and currently relieved non UK Schemes.
Brought into place to broadly make overseas Schemes equivalent to UK schemes
What rules apply to RNUKS
Flexible access triggers MPAA
If an overseas payment would be considered an UFPLS taxed as pension income
Must provide information when requested in prescribed circumstances
If pension savings are made to currently relieved non UK Scheme MPAA can be applied
What is the amount of charge applied to overseas transfers since 9th March 2017?
25% unless there is a genuine need.
What would constitute a genuine need for overseas transfers?
Both the member and the QROPs being inside the EEA or moving abroad, so you reside in the same country.
Or transferring to an employers pension abroad.
What is the time frame for pre 6th April 2017 being classed as a temporary non-UK resident?
5 years
What is the time frame for 6th April 2017 on ward being classed as a temporary non-UK resident?
10 years
When would a person be taxed as a temporary non-UK resident who has returned on the time period they were away?
Only if the total relevant withdrawals from RNUKS and other pensions schemes exceed £100,000 (excluding tax free cash of tax free part of UFPLS)
What is a relevant withdrawal for an RNUK?
Short-term annuity payments from a flexible access drwdown
Withdrawals from drawdown fund if the memeber was entitled to a flexible pension before 6th April 2015
An income withdrawal from flexi access drawdown
A lifetime annuity where payments go down by more than the prescribed amount that the member/dependant becomes entitled to after 6th April 2015
Any payment that is liable to tax but not because of double taxation
What happens to payments not made in sterling to check against the relevant withdrawls £10000 limit?
They are converted using the HMRC average rates on their website.
What is QROPS
Qualifying recognised overseas Pension scheme
