Qualifying recognised overseas pension schemes (QROPS)

Produced by a Tolley Employment Tax expert

Employment Tax

Guidance

It is possible to make transfers from UK registered pension schemes to overseas pension schemes (OPS) so long as they are registered with HMRC as qualifying recognised overseas pension scheme (QROPS). A transfer from a UK registered pension scheme to a QROPS is a ‘recognised transfer’ and so does not involve any tax charge as it is an ‘authorised payment’. It is nonetheless an ‘event’ that a UK pension scheme administrator must report to HMRC. However, transfers to QROPS may be subject to an overseas transfer tax charge at 25% (see below).

Autumn Budget 2024 announced that the rules for Overseas pension schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) established in the EEA will be aligned with rules for overseas pension schemes in the rest of the world from 6 April 2025. The will be a new requirement, applying from 6 April 2026, for registered pension schemes to have a UK resident scheme administrator. The scope of the overseas transfer charge is extended from 30 October 2024, with the exclusion from the charge for

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