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Is a QROPS a registered UK pension scheme?

“Is a QROPS a UK-registered pension scheme?”

Is a QROPS a registered UK pension scheme?

In short, no, a QROPS is not a UK-registered pension scheme. It is a foreign pension scheme that is recognised by HMRC, to allow tax-free transfers from UK-registered pension schemes.

The Qualifying Recognised Overseas Pension Scheme (QROPS) was first introduced in 2006 as a way to simplify the process of British people taking their pension savings with them if they decide to move abroad permanently.

Once funds are in a QROPS, they will no longer fall under UK pension legislation (but the scheme has an obligation to report withdrawals to HMRC for 10 tax years after the transfer). This means that you will not be subject to any rule changes within the UK.

This however will not be the case if you decide to transfer your funds again within five tax years (to an unapproved scheme). Doing this, you could become subject to UK legislation and taxation once more. This will also apply is you decide to permanently return to the UK within ten years of moving abroad.

Last updated: 7 September 2020 at 16:16