What is a QROPS scheme?
I have a UK pension and live abroad. I was wondering, what is a QROPS scheme exactly?
A QROPS is a Qualifying Recognised Overseas Pension Scheme. For an overseas scheme to be deemed as such, it must satisfy criteria stipulated by HMRC.
A QROPS is run by a trustee or trustees in a jurisdiction outside of the UK (regularly Malta, Gibraltar or the Isle of Man owing to the trusted regulatory environments and general stability of these countries). It ‘qualifies’ in that; HMRC agrees that it is similar enough to UK pension schemes that UK pension holders can transfer their pension pot over. This is in order that they can live abroad as an expat without their pension being subject to UK rules.
In some cases, scheme sanctions and unauthorised transfer fees may be charged if the destination pension scheme is not a QROPS.
For more detailed analysis, please read our in-depth QROPS article.
