QROPS: the latest restrictions

HMRC’s recent reviews of pension provision

HMRC has been extending the disclosure of tax avoidance schemes (DOTAS) regime into the area of pension provision. Tax avoidance schemes must be declared (FA 2004 ss 306–319). DOTAS now covers income tax corporation tax CGT NICs SDLT and IHT.

An early indication of HMRC’s ongoing reviews of pension provision was the introduction of the complex ‘disguised remuneration’ legislation under FA 2011 Sch 2. This Schedule inserted ITEPA 2003 new Part 7A. The legislation concerns amongst other matters non-registered pension scheme provision whether in the UK or overseas. It imposes PAYE and NIC charges on certain payments and deemed payments made by ‘relevant arrangements’ for the benefit of employees through a...