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The ROSIIP GLO concerned the imposition of a 55% tax charges against pension-holders who had transferred their UK pensions into the Singapore ROSIIP Pension Fund. At the time of transfer, ROSIIP had been listed on HMRC’s website as a QROPS – transfers to which attract no charge to tax. The fund was retrospectively withdrawn from HMRC’s list in 2008 so that transfers made prior to its withdrawn were said to be “unauthorised payments” and were assessed to the 55% charges.

The pension holders argued that HMRC could not impose the tax charges against them because they had obtained a legitimate expectation from HMRC that they would not be subject to tax on their transfers. On the fifth day of the hearing, HMRC accepted that they could not maintain their assessments against the claimants and the assessments were withdrawn. The background to the withdrawal of these assessments suggests that HMRC may not be able to impose tax charges against individuals who make transfers into other funds which appeared on the QROPS list and were later removed retrospectively.

If you or your clients receive an assessment or enquiry in circumstances similar to those described above, please contact us.

This article appears in the JHA July 2013 Tax Newsletter, which also features:

1. Retrospective Changes to rules on interim payment applications in tax cases
2. FII GLO 3rd ECJ reference
3. Portfolio Dividend Claims: High Court Trial Concludes
4. Exit Taxes
5. Belgium notional interest deduction regime contrary to EU law