If you have UK pension savings and are planning to become an expat, you can transfer your money to an overseas pension for easier access.
The offshore scheme must be a Qualifying Recognised Overseas Pension Scheme (QROPS)
How do I know if an offshore pension is a QROPS?
The pension will be listed on the HM Revenue and Customs (HMRC) QROPS List, which is updated roughly every two weeks.
Some QROPS prefer not to be listed, but the rule of thumb is if the pension is not on the list, it’s not a QROPS.
If the QROPS is not listed, speak to HMRC about confirming the scheme’s status.
Who can transfer to a QROPS?
Any British expat with a UK workplace or private pension or any foreigner who worked in Britain and has quit the country leaving a pension pot behind
Will I pay the QROPS transfer tax?
That depends on when the transfer took place, where the QROPS you transfer to is based and where you live.
- No tax is due If the transfer was before March 9, 2017 or the transfer is to a QROPS run by an employer.
- If you move to a European Economic Area (EEA) country, no tax is due if live in the EEA or move outside the EEA within five years of the date of the transfer.
- If you move outside the EEA, you do not pay tax if you live in the country where your QROPS is based
You may also pay tax if you move outside the EEA or from the country where your QROPS is based within five years of the transfer.
Is it true I can ask for a transfer tax refund?
Yes, under certain circumstances.
If your QROPS is in the EEA and you move to an EEA country within five years of the transfer, you can claim a refund.
How much is the transfer tax?
The tax is deducted by the pension firm transferring the money and adds up to 25% of the tax-relieved contributions in the fund.
Tax-relieved contributions are those topped up by HM Revenue and Customs (HMRC).
Expats also pay the tax if they have not given the QROPS provider key information about the transfer needed to complete a Form APSS263
