Premier FX collapse – What to do next for customers

According to HM Revenue and Customs (HMRC) there has been little change in the market for Qualifying Recognised Overseas Pension Scheme (QROPS)s in the two weeks ending August 2016.

The continued uptake of QROPS in France is likely to be a factor behind this, with the number of offshore pensions available in the world rising by four to pass the 1,250 mark for the first time – the fact that nine schemes were delisted was more than offset by the opening of 13 new schemes.

French QROPS remain one of the most popular. However, QROPS are available across 42 different jurisdictions, with Australia still the foremost QROPS centre; its 302 available schemes account for around one-quarter of the those available across the world.

The ex-pensions minister Steve Webb is urging the government and the HMRC to do more to alert grandparents to all the pension perks they’re entitled to after it was revealed that the overwhelming majority are not receiving the full state pension. By missing out on a particular benefit, unknowing eligible grandparents are missing out on £231 a year. Over the course of their full retirement, this could possibly lead to a loss of thousands of pounds.

It is a scheme called the Specified Adult Childcare Credit. It is thought that only 1,300 grandparents are taking advantage of it despite 100,000 being eligible (a mere one per cent). The scope of the problem was found out by Webb when he sent a Freedom of Information request to the HMRC.

The purpose behind the Specified Adult Childcare Credit is to allow grandparents who give up work completely to help raise their grandchildren the chance to claim National Insurance (NI) credits.