Is HMRC at last stemming the tide of pension liberation?
The answer could be a tentative “yes” when looking at the latest statistics for pension scheme registrations contained in Pension Schemes Newsletter 63.
For the 2013/14 tax year HM Revenue & Customs (HMRC) received and registered 11,184 schemes up until 21 October 2013 which is the date that HMRC introduced new registration procedures to combat pension liberation (see Pensions Bulletin 2013/44).
From 21 October 2013 until the end of the 2013/14 tax year HMRC only received 4,530 applications to register new pension schemes which may suggest that the liberators have been discouraged by the change from a “process now, check later” approach to one where HMRC now reviews each application before granting tax-registered status.
Comment
We must be careful not to make too much of this apparent reduction in applications for new pension scheme registrations, but the numbers show that prior to the change in procedures HMRC were receiving dozens of applications each day.
Date announced for Individual Protection 2014 online applications
As well as the above, Pension Schemes Newsletter 63 also announced that online applications for Individual Protection 2014 (IP2014 – see Pensions Bulletin 2014/06) can be made from 18 August 2014.
The Newsletter also contains a few updates of an administrative nature:
- iForms – HMRC has started the process of converting its online forms to enable users to complete them online and eventually even to be able to submit them online in some cases
- Fixed Protection 2014 (FP2014) – anyone who applied for FP2014 before 5 April 2014 but has yet to receive their confirmation certificate should contact HMRC’s Pensions Helpline if they are concerned
- QROPS transfers – following customer feedback, scheme administrators having to report fund or assets transfers to a Qualifying Registered Overseas Pension Scheme (QROPS) may now complete the relevant APSS262 form on paper rather than having to complete it online
- Relief at source – applications for relief at source should not be submitted until the valid registration certificate for that scheme has been issued as HMRC will not consider applications until a scheme has been fully registered
Comment
IP2014 has effectively been operational since 6 April 2014 but, because it requires the Royal Assent of the Finance Act 2014 to formally become law, registration will not be possible until 18 August 2014. Those who are intending to apply for IP2014 are encouraged to do so straight away from that date.
This Pensions Bulletin does not constitute advice, nor should it be taken as an authoritative statement of the law. For further help, please contact David Everett at our London office or the partner who normally advises you.
