The special relationship between the USA and QROPS pensions for British expats and Americans with UK pension savings is back on.
The USA rejoined the list of QROPS centres this week after a false start.
Earlier in the month the USA was scrubbed from the QROPS List when a revised list was posted online within hours of announcing the Transform Group Simplified Employee Pension Plan.
Now, the QROPS is reinstated on the list, bringing the USA back into the fold of financial centres offering the pensions after an absence of five months.
The latest list adds seven QROPS, including the US scheme, while HMRC says one is removed and 14 have been updated.
In detail, Australia has added two QROPS, and one each have gone to Germany, Guernsey, the Isle of Man, Liechtenstein and the US. The removed scheme was in Ireland.
QROPS List By Financial Jurisdiction
|Financial Centre||No of QROPS|
|Isle of Man||288|
The table shows the net number of schemes, accounting for new listings and removals since the publication of the last list.
What is the QROPS List?
The HMRC list tells overseas pension providers and retirement savers transferring funds from a UK pension to a QROPS or between offshore pension providers which schemes qualify for QROPS status.
QROPS providers certify their schemes meet UK offshore pension and tax rules to go on the list, but HMRC warns this does not mean any are approved or certain to be QROPS. Retirement savers should check this before transferring any money.
The next HM Revenue and Customs QROPS List is scheduled for October 15, 2017.
QROPS overseas transfer charge
The overseas transfer charge started in March 2017 and is calculated as 25% of the transfer value of a fund into a QROPS.
For expats living inside the European Economic Area (EEA), countries with QROPS that are not subject to the overseas transfer charge are:
- The Netherlands
QROPS countries outside the EEA
Countries outside the EEA are subject to the transfer charge if an expat does not live in the same country as the pension is administered – these are:
- China – for any QROPS based in Hong Kong
- Isle of Man
- New Zealand
- South Africa
Other exceptions to the transfer charge may apply if the overseas scheme is run by an employer or multinational non-government organisation, such as the EU QROPS.
A five-year residence rule may also apply.