HMRC Return for QROPS on Form APSS253 "Flexibly accessed benefits" question????

[Julian927]

I may have posted this in the wrong forum, in the first place, apologies if that is the case.

 

Just doing my return to HMRC on their fairly new online APSS253 form, which incidentally cannot be saved if you get half way through and get stuck! (Not very user friendly that feature).

Have come to the question, "Has the member flexibly accessed their benefit?"

I have no idea what they mean. We take our pension form our Superannuation (Qrops registered) in one lump sum, normally between April 6th and June 30th in order not to fall foul between the two tax years......but this question has me foxed. Does it mean I can flexibly choose the amount I take and when or what? I have read some of the notes online and they are not clear to me. Anyone help?

Julie

[Andrew from Vista Financial]

My understanding of this would be:

 

The rules on pensions have changed and this refers to accessing flexible pension benefits ie personal pension/sipps.

 

A QROPS as of yet has not been granted flexible pension access the same way as private defined contribution pensions.

 

Your QROPS scheme should be reporting to HMRC on pension payments withdrawals not you and therefore if you do not have UK defined contribution pension this question does not apply to you.

 

KR

 

Andy

[Andrew from Vista Financial]

Hi Julie

 

My apologies I thought you were filling In your UK tax return.

 

Having looked at the form I realise that you must have a QROPS SMSF as this is the reporting form for YOUR QROPS Scheme?

[Andrew from Vista Financial]

Prior to April flexible drawdown was allowed for certain people who had more than 12k GBP pa ( I believe) of guaranteed minimum other pension income which meant that someone with a defined contribution scheme was able to have flexibility on the amount they withdrew and therefore could essentially access up to 100%.

 

From April 6 people are able to access up to 100% of defined contribution schemes regardless of any other pension income known as full flexibility.

 

I imagine it is referring to this if you are reporting a payment for this tax year (UK).

 

Obviously you should confirm this with HMRC however I imagine that the question (if not referring to flexible drawdown) was put there initially when it looked as though QROPS were going to be granted the same flexibility as UK pensions from April 15 however HMRC recently backtracked and stated that QROPS temporarily are not being granted with the same flexible rights http://www.international-adviser.com/news/retirement/qrops-questions-linger-following-pension-reforms?utm_source=Adestra&utm_medium=email&utm_term=&utm_content=QROPS%20questions%20linger%20following%20pension%20reforms&utm_campaign=IA%2007.04.15

 

Based on this my guess would be the answer is no, if you are just drawing your usual pension payments within the parameters of how they should be drawn.

 

However I would advise you do check with HMRC as said.