Hong Kong QROPS Schemes under scrutiny.
HMRC has announced a crackdown on tax abuses by QROPS HK Schemes.
An article in the International Adviser today stated that legislative measures are to be put in place to stem tax avoidance through the use of QROPS. It is believed, though, that this only relates to Hong Kong schemes.
Many advisers have been promoting Hong Kong QROPS schemes for a while as being able to access 100% of your pension as a lump sum, which is against the spirit of QROPS transfers. This could spell trouble for many QROPS HK schemes
The Inland Revenue announced that a “tax loophole would have emerged” had the government not taken action. No detail was provided on what the loophole is or what action will be taken.
More information about QROPS HK schemes should be provided on HMRC’s website, although no detail was available on the HMRC site at the time of writing this article.
The announcement said the legislation takes effect from today.