Form: Application for Transfer of Residence relief (ToR1)

Updated: Form updated as the conditions for applying for a Transfer of Residence have changed.

Apply for Transfer of Residence relief if you want to transfer your normal place of residence from outside the EU to the UK.

You should also use the form to declare if you want to:

  • import any vehicles to the UK for you or your family to use
  • bring any pets to the UK

The ToR1 has replaced the following forms:

  • Import and export: bringing personal belongings to UK from outside the European Community (C3)
  • Import and export: bringing your pet to the UK from outside the European Community (C5)
  • Import and export: import of private motor vehicle from outside the European Community (C104A)
  • Import and export: import of private vessel from outside the European Community (C104A Vessels)

Give as much information as you can in your application.

Fill in the form on-screen, print if off and post it to HM Revenue and Customs before you start to move any personal property to the UK.

You’ll need to fill in the form fully before you can print it. You can’t save a partly completed form.

Before you start using the form

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Moving your belongings to the UK
This guidance gives details of your tax and customs responsibilities when you move your personal belongings to the UK from abroad.

Customs clearance for transfers of residence to the UK and EU
This guidance gives details on entitlement to Transfer of Residence relief, and the procedures to follow for shipments to the UK, or for onward delivery to EU.

Notice 3: bringing your belongings, pets and private motor vehicles to UK from outside the EU
This notice explains how to import your personal belongings, pets and private motor vehicles into the UK from outside the EU.

Source: HMRC

Official Statistics: Transfers to Qualifying Recognised Overseas Pension Schemes

Updated: Updated to include the 2016 to 2017 tax year.

Since April 2006 individuals have been able to transfer their pension savings in a registered pension scheme to a qualifying recognised overseas pension scheme (QROPS). To be a QROPS a pension scheme must be based outside the UK and meet certain requirements. Provided the requirements are met transfers to QROPS are free of UK tax up to the lifetime allowance. This is intended to allow people who wish to emigrate to take their pension with them to their new country of residence.

This publication includes the number of transfers made to QROPS and the total amount of those transfers each year since 2006 to 2007, as reported to HMRC.

Source: HMRC

Policy paper: Income Tax and National Insurance contributions: treatment of termination payments

Updated: Updated to mention the introduction of employer NICs on termination payments above £30,000 will now take effect from 6 April 2019.

The measure aligns the rules for tax and employer National Insurance contributions (NICs) by making employer NICs payable on termination payments above £30,000.

Update

On 2 November 2017 the government announced that the introduction of the National Insurance Contributions Bill will be delayed.

The introduction of employer NICs on termination payments above £30,000 will now take effect from 6 April 2019 rather than 6 April 2018.

Source: HMRC

Detailed guide: Overseas pensions: set up your scheme for migrant member relief

Updated: There is no legal time limit by which scheme managers of qualifying overseas pension scheme (QOPS) have to tell HM Revenue and Customs that the scheme ceases to be a QOPS.

Overview

Your members and their employers can claim tax relief on their pension contributions if the member moves to the UK after joining your scheme. This is known as migrant member relief.

Your scheme needs to be a QOPS for your members to get tax relief. The scheme must:

  • be an overseas pension scheme
  • report certain information to HM Revenue and Customs (HMRC)

Overseas pension schemes

Your scheme must be based outside of the UK and can’t be a registered pension scheme. It must also meet the following rules.

The tax recognition test

Your scheme must be:

  • open to residents in the country your scheme was set up in
  • registered with the country’s tax authority as a pension scheme

Your scheme’s country must have a system to tax personal income and give tax relief on pensions. The country (except for Australia) must only give tax relief on either:

  • pension contributions
  • payments out of the scheme

Australian pension schemes must be complying superannuation plans.

The regulatory requirements test

Your scheme must be regulated by a pension scheme regulator in the country your scheme is run from.

If a regulator doesn’t exist in your country for your occupational or non-occupational pension scheme, your scheme must be either:

  • based in an EU member state (other than the UK), Norway, Iceland or Liechtenstein
  • an occupational pension scheme
  • provided by a person that is regulated to provide the pension scheme
  • a non-occupational scheme provided by a person that is regulated to provide the scheme

Where your scheme is a public service pension scheme set up or approved by the government of the country it’s based in, you won’t need to meet this test.

International organisations

There are different rules for pension schemes run by international organisations, like the EU or UN.

To be an overseas pensions scheme, your scheme must be set up to provide benefits in respect of service to that international organisation by its employees.

Information your scheme must report

You must tell HMRC about ‘benefit crystallisation events’ for migrant members of your scheme. Use form APSS252 to do this.

Benefit crystallisation events occur when the member:

  • starts taking a regular income from their pension savings before they’re 75
  • gets an increase in the equivalent of annual pension payments they’re receiving, which is more than the greater of:
    • the retail price index
    • 5% of the previous year’s pension payment
    • £250
  • buys a lifetime annuity before their 75th birthday
  • puts their pension savings into a fund before their 75th birthday that can be accessed at any time (known as a ‘drawdown’ pension)
  • reaches their 75th birthday with pension savings that haven’t been accessed
  • reaches their 75th birthday with money left in a drawdown pension
  • dies before their 75th birthday and within 2 years their uncrystallised pension savings are used to pay the equivalent of a lump sum death benefit or a pension to their beneficiaries
  • transfers their pension to a qualifying recognised overseas pension scheme
  • is paid the equivalent of:
    • pension commencement lump sum
    • uncrystallised funds pension lump sum
    • serious ill-health lump sum
    • lifetime allowance excess lump sum
    • stand-alone lump sum
  • is overpaid the equivalent of a lump sum because of an error calculating their pension entitlements
  • didn’t begin taking their pension before they died because you couldn’t confirm they were entitled to their pension (for example, you couldn’t contact them)
  • wants to test their pension savings against the lifetime allowance before they start taking a pension or their 75th birthday

When you report a benefit crystallisation event you also need to tell HMRC if the pension savings have been used to get:

  • a flexi-access drawdown pension
  • an uncrystallised pension lump sum
  • a flexible lifetime annuity

You should also tell HMRC if you agree to pay a member’s annual allowance tax charge – using form APSS210.

Tell HMRC you’re a QOPS

To be a QOPS, you must tell HMRC that your scheme:

  • is an overseas pension scheme
  • will report information on pensions that have received UK tax relief
  • will tell HMRC if your scheme stops being a QOPS

You can use form APSS250 to do this.

When you’ve given HMRC the required information they’ll send you a letter, which will include your QOPS reference number.

You must make sure your scheme meets the rules to be a QOPS at all times if your members want to receive tax relief on their contributions.

When you stop being a QOPS

You must tell HMRC if your scheme stops being a QOPS.

HMRC can also decide your scheme isn’t a QOPS if you don’t report the necessary information to HMRC.

Scheme managers of existing QOPS should check if their scheme will meet the new conditions introduced from 6 April 2017. If their scheme doesn’t meet the new conditions, they must tell HMRC.

The result of ceasing to meet the conditions to be a QOPS will be that members and employers will no longer be able to claim tax relief on contributions to the scheme under the migrant member relief provisions.

Source: HMRC

Detailed guide: Overseas pensions: payments to your members

Updated: Updated to show new annual allowance .

Overview

You need to tell HM Revenue and Customs (HMRC) and your members about payments from pension savings if you’re the scheme manager of a qualifying recognised overseas pension scheme (QROPS).

You only need to tell HMRC about payments from pension savings that have received UK tax relief.

Tell HMRC about a payment

You need to tell HMRC within 90 days when you make a payment, including transfers from pension savings that are paid either:

  • into an overseas scheme on or after 6 April 2017 that have benefited from UK tax relief
    were transferred to your scheme in the last 10 years
  • to or in respect of a scheme member who’s a UK resident or has been a UK resident in the previous 5 tax years
  • to or in respect of a scheme member who’s a UK resident or has been a UK resident in the previous 10 tax years, if the transfer to your scheme from a registered pension scheme was made on or after 6 April 2017
  • in the 5 tax years after the transfer from a registered pension scheme on or after 6 April 2017

You have to report:

  • when you start making regular pension payments
  • lump sum payments
  • pension transfers
  • when the member surrenders their pension funds or gives them to someone else

You can use form APSS253 to do this.

You don’t need to report a payment if the funds that were transferred to your scheme have been used up.

HMRC can remove your QROPS status if you:

  • don’t tell them about a payment on time
  • give incorrect information

Report purchases of taxable property

You’ll also have to tell HMRC if your scheme allows your members to influence how their pension is invested and your scheme buys taxable property. There’s no time limit on reporting taxable property. You’ll always have to report this if you use pension savings that have received UK tax relief.

Use form APSS253 to do this. Report purchases of taxable property as an ‘Other payment’ in the ‘Types of payment’ section of this form.

Flexi-access pension payments

You must give your members a flexible access statement when you:

  • start making payments from pension savings that have been invested to give an adjustable income (known as a flexi-access drawdown pension)
  • pay a lump sum payment from their pension savings known as an ‘uncrystallised funds pension lump sum’

You need to do this if your member:

  • is a UK resident or has been a UK resident in the previous 5 tax years
  • hasn’t flexibly accessed their pension savings before

You need to send the flexible access statement within 91 days of the payment.

What to put in a flexible access statement

You need to tell the member that they:

  • have flexibly accessed their pension savings and the date they first did it
  • need to give a copy of the flexible access statement to the scheme manager or administrator of any pension schemes they join or pay into

You also need to tell them that if they contribute more than £4,000 into a money purchase or certain hybrid arrangements:

  • they’ll have to pay an annual allowance charge on the amount over £4,000
  • their annual allowance for other types of pensions will be reduced by £4,000

Source: HMRC