TaxPersonal TaxHigh Court rules against Singapore pension scheme

High Court rules against Singapore pension scheme

Scheme for UK taxpayers to transfer assets ruled unlawful

A SINGAPORE-BASED company has lost its appeal against HM Revenue & Customs decision to remove a pension scheme from its safe list. 

HMRC struck Singapore off its list of countries that individuals can transfer their pensions to without incurring tax charges in 2008. The taxman believed that Singapore was being used by many qualifying recognised overseas pension schemes (Qrops) users to bypass pensions rax rules, Citywire reported; they did this through taking out large cash lump sums after the five-year tax reporting rules had expired.

Equity Trust took HMRC to high court to declare whether its own scheme, the Panthera Recognised Overseas Self Invested International Pension (Rosiip), was lawful. The judge ruled its scheme was not open to Singapore residents, contrary to Equity Trust’s claims, as Singapore’s inland revenue believed it operated as a foreign trust and gave it tax breaks accordingly.

This ruling means that scheme members will have to pay income tax charges of up to 50% on the funds in the scheme.

The judge gave Equity Trust permission to challenge the ruling.

Related Articles

Colin: Just another brick in the pension plan

People In Practice Colin: Just another brick in the pension plan

2y Richard Crump, Writer
Osborne warned off bringing forward pensions tax cuts

Personal Tax Osborne warned off bringing forward pensions tax cuts

2y Calum Fuller, Reporter
#SummerBudget: Government eyes scrapping tax relief on pension contributions

Personal Tax #SummerBudget: Government eyes scrapping tax relief on pension contributions

2y Natasha Browne
ACA calls for ‘fundamental’ cross-party review of pensions tax framework

Personal Tax ACA calls for ‘fundamental’ cross-party review of pensions tax framework

3y Richard Crump, Writer
Over 55s could face five-pronged property tax hit

Accounting Firms Over 55s could face five-pronged property tax hit

3y Chris Warmoll, Writer
Colin: Two things in life were guaranteed...

Personal Tax Colin: Two things in life were guaranteed...

3y Taking Stock
Conservatives promise to scrap 55% pensions ‘death tax’

Personal Tax Conservatives promise to scrap 55% pensions ‘death tax’

3y Calum Fuller, Reporter
The Practitioner: Government-subsidised tax advice please?

Consulting The Practitioner: Government-subsidised tax advice please?

3y Kevin Reed, Writer