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: pension transfers

Updated: More information about the overseas transfers charge and the conditions that apply has been added.

You must tell HM Revenue and Customs (HMRC) about pension transfers to or from your qualifying recognised overseas pension scheme (QROPS) that have received UK tax relief. You also need to provide information to the scheme manager or administrator who’s receiving the transfer.

You still need to report this information if you manage a former QROPS.

Your pension scheme can lose its QROPS status if you don’t provide this information within the time limit. Former QROPS may get an initial penalty of £300 and a daily penalty of up to £60 until they provide this information.

When transfers are taxed

You need to check if an overseas transfer charge needs to be paid when pension savings which have received UK tax relief are transferred.

You’re jointly responsible with the scheme member for making sure that the correct tax is paid on transferred pension savings that have received UK tax relief.

Transfers to a QROPS

Pension transfers from a QROPS (or former QROPS) to another QROPS may be liable to an overseas transfer charge of 25% of the amount that’s being transferred.

The overseas transfer charge doesn’t apply to the part of a transfer that includes pension savings:

  • held under the scheme before 9 March 2017
  • where the overseas transfer charge was paid on a previous transfer (and hasn’t been refunded by HMRC)

The overseas transfer charge can apply to transfers requested on or after 9 March 2017:

  • that include funds that came from a transfer (known as the original transfer) from:
    • a registered pension scheme
    • an overseas pension scheme where the member’s pension funds have received UK tax relief
  • where the transfer from the QROPS (or former QROPS) is made within five full tax years of the original transfer into the scheme

The overseas transfer charge doesn’t apply if the scheme member has provided information in advance of the transfer which shows:

  • they’re a resident of the country that the QROPS receiving the transfer is based in
  • they’re a resident of a country in the European Economic Area (EEA) and the QROPS is also based in another EEA country
  • the QROPS is an occupational pension scheme and the member is an employee of a sponsoring employer under the scheme at the time of the transfer
  • the QROPS is an overseas public service scheme and the member is employed at the time of transfer by an employer that participates in that scheme
  • the QROPS is a pension scheme of an international organisation and the member is employed at the time of transfer by that international organisation

Transfers to an overseas pension scheme that isn’t a QROPS

Transfers of pension savings to an overseas pension scheme which isn’t a QROPS will be treated as an unauthorised payment and the scheme member may be charged at least 40% tax.

Information you need to get from your scheme member

You need to ask your scheme member to give you information about the transfer within 30 days of the transfer request.

You use form APSS255 to request this information from your scheme member.

Your scheme member has 60 days from their transfer request to give you this information. If they don’t, you must deduct the overseas transfer charge (where it applies) if you make the transfer.

What to report to HMRC

You’ll need to tell HMRC within 90 days about any pension transfers from your scheme if either:

  • it’s less than 10 years since the funds were transferred from a registered pension scheme or another overseas scheme where the member’s pension funds have benefited from UK tax relief
  • your scheme member:
    • is a UK resident
    • has been a UK resident at any time in the past 5 tax years – or at any time in the past 10 tax years if the extended time limit applies

The extended time limit applies to transfers on or after 6 April 2017 received from:

  • a registered pension scheme
  • an overseas pension scheme where contributions to that scheme have benefited from UK tax relief

You need to tell HMRC whether or not the overseas transfer charge applies. You can use form APSS253 to do this. If the overseas transfer charge needs to be paid, once you report it, HMRC will tell you how to pay the tax.

You’ll also need to tell HMRC if the scheme member’s circumstances change within 5 tax years of the transfer, and the overseas transfer charge needs to be paid as a result. You can use form APSS244 to do this.

What to report to the new scheme administrator or manager

The information you need to give to the new scheme administrator or manager depends on whether pension savings are being transferred to a registered pension scheme or another QROPS.

Transfers to a registered pension scheme

You need to tell the new scheme administrator within 91 days of the transfer from your scheme if the scheme member has:

  • received a lump sum payment from their pension savings (the equivalent of ‘uncrystallised funds pension lump sum’)
  • started taking money from pension savings that have been invested to give an adjustable income (the equivalent of ‘flexi-access drawdown pension’)

Transfers to another QROPS

You need to tell the new QROPS manager within 91 days of the transfer:

  • the amount of any pension savings included in the transfer that have received UK tax relief since you started managing it – state the amounts built up before 9 March 2017 and since 9 March 2017
  • the period in which the overseas transfer charge applies for the transfer (the relevant period) – where the transfer includes more than one source of pension savings that have received UK tax relief, give the relevant period for each source
  • if the scheme member has received a lump sum payment from their pension savings, the equivalent of ‘uncrystallised funds pension lump sum’
  • if the scheme member has started taking money from pension savings that have been invested to give an adjustable income (the equivalent of ‘flexi-access drawdown pension’)
  • the value of the ‘relevant transfer fund’ included in the transfer from a registered pension scheme (or a non-UK scheme that has benefited from UK tax relief), which includes:
    • transfers from a registered pension scheme made before 9 March 2017
    • pension funds under another QROPS that received UK tax relief where the transfer was made before 9 March 2017
    • pension funds that received UK tax relief held under an overseas scheme that was not a QROPS when the transfer was made, and the transfer was made before 6 April 2017
  • the value of each of the member’s ‘ring-fenced transfer funds’ included in the transfer value which includes:
    • transfers from a registered pension scheme made on or after 9 March 2017
    • transfers from another QROPS of funds that received UK tax relief made on or after 9 March 2017
    • transfers of funds that received UK tax relief from an overseas scheme that was not a QROPS when the transfer was made, and the transfer was made on or after 6 April 2017
    • an onward transfer of any one of the previous three types of transfer
  • if you are aware that any of the relevant transfer fund or ring-fenced transfer fund originates from a UK registered pension scheme, and if known, the date:
    • of the original transfer of those UK tax-relieved pension savings from the registered pension scheme
    • the original transfer from the registered pension scheme was requested

You also need to tell the new QROPS manager whether an overseas transfer charge of 25% applies.

If the overseas transfer charge applies, tell the new QROPS manager the amount of the transfer that must be taxed and the amount of tax that needs to be paid.

If it doesn’t apply, tell the new QROPS manager why the transfer was tax free. If it’s tax free because a charge was paid on a previous transfer, give details of the previous charge.

What to report to the scheme member

If an overseas transfer charge applies, you must tell the scheme member within 90 days of the transfer:

  • the date of the transfer
  • that an overseas transfer charge applies to the transfer
  • the amount of the transfer that’s subject to the overseas transfer charge
  • the amount of tax that needs to be paid
  • if the tax has been paid – state how much you’ve paid and the date you paid it
  • if you intend to pay the charge – state the amount you’ll pay

If an overseas transfer charge doesn’t apply you must tell the scheme member within 90 days of the transfer:

  • the date of the transfer
  • that the overseas transfer charge doesn’t apply to the transfer
  • the reason why the overseas transfer charge doesn’t apply

If the charge doesn’t apply because the individual is resident in the same country as the QROPS or they’re both in a country within the EEA, you must tell the scheme member within 90 days:

  • when the period in which the overseas transfer charge may apply ends (known as the relevant period)
  • how the tax charge may apply within that period

Transfers into your scheme

You don’t need to report transfers into your scheme, but HMRC might ask you for information about the pension savings you’ve received.

The scheme manager or scheme administrator transferring the pension savings to your QROPS will tell you if the overseas transfer charge applied and how much tax was paid. They’ll also tell you if the transfer wasn’t taxable and the reason why.

Keep this information for 5 tax years after the date of the transfer in case the scheme member’s circumstances change and overseas transfer charge needs to be paid or repaid.

Claim a refund of the overseas transfer charge

Use form APSS243 to claim a refund from HMRC where the overseas transfer charge:

  • was paid in error
  • should be repaid because of a change in the scheme member’s circumstances

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