Recognised Overseas Pension Scheme (QROPS)

1 Introduction

1.1 Following the changes introduced by the Finance Act 2004, there are now less restrictive rules on transferring pensions rights overseas from UK registered pension schemes. However, the treatment of funds post transfer are more restrictive. The changes were part of the intended simplification of the previous pensions tax regime, and compliance with EU court decisions and the EU pensions directive.

1.2 The three main circumstances where an overseas transfer would occur are:

• when individuals who migrate (or intend to migrate) from the UK wish to transfer their UK pension funds to an overseas pension scheme (either in or outside the EU), and
• when returning nationals return to their country of citizenship
• where UK residents have personal circumstances where they may benefit from arranging their pension affairs in another jurisdiction.

Our guidance on QROPS is currently being updated.