Transferring UK pensions overseas

You may be able to transfer your UK pension savings to an overseas pension scheme. However, the overseas scheme you want to transfer your pension savings to, must be a ‘qualifying recognised overseas pension scheme’ (QROPS) for it to be classed as a recognised transfer and for it not to attract an unauthorised payment tax charge. In addition, other tax charges may still apply when you transfer to a QROPS. More information on this can be found below.

HMRC's Recognised Overseas Pensions Schemes (ROPS) list, provides a frequently updated list of countries and schemes that identify as meeting the conditions to qualify as ROPS.

Potential tax charges 

Other tax charges may also apply when transferring to a QROPS:

Overseas transfer allowance (OTA)

The OTA is the maximum value of pension savings you can transfer overseas (to a QROPS) - above which you’ll be charged 25% tax on the excess. The standard allowance is £1,073,100, although some people may have a higher one.

If you’ve already taken any money from your pension pot before the 6 April 2024, your overseas transfer allowance will be reduced by the same amount.

The existing overseas transfer charge on residency/employment criteria will remain in place. If your entire transfer has already been subject to that 25% charge, the new excess charge will not apply.

These rules apply if your transfer date is on or after 6 April 2024.

Be aware that if you aren’t resident in the same country as your new pension scheme, you’ll have to take a MoneyHelper guidance appointment before going ahead. These appointments can take several weeks to arrange.

If you need to talk to us, you can call us. However, we can’t advise you on any tax responsibilities you may have.

The Overseas Transfer Charge

A recognised transfer from a UK registered pension scheme to a QROPS that was requested on or after 9 March 2017 may be subject to the overseas transfer charge. This is an income tax charge of 25% of the transferred value. A recognised transfer will be subject to the overseas transfer charge if none of the following five exclusion conditions are met: 

• You are resident in the country where the QROPS receiving your transfer is based 

• The QROPS receiving the transfer is established in Gibraltar or a country within the European Economic Area (EEA) and you are a UK resident or resident in a country within the EEA or Gibraltar 

• The QROPS to which you are transferring to is an occupational pension scheme and you are an employee of a sponsoring employer under the scheme 

• The QROPS to which you are transferring to is an overseas public service scheme and you are employed by an employer that participates in that scheme 

• The QROPS to which you are transferring to is a pension scheme of an international organisation and you are employed by that international organisation 

Other tax considerations

In addition, members need to be mindful that even after transfer, tax charges may still be applied to the UK transfers in overseas schemes for example: 

• On transfer your QROPS will have a 10 year reporting requirement to HMRC so that if you breach the rules of a QROPS (such as releasing funds before age 55) you could still be subject to a tax charge of up to 55% of the transfer amount plus penalties. 

• If you are UK resident when you take benefits from your QROPS you are likely to be subject to UK income tax. 

• If you are resident abroad you will also need to check the tax rules for that country and the country where your QROPS is based. Before you transfer check what tax you will pay on the pension benefits.

Existing pension protections

If you have any pension allowances protections, such as protected tax free cash or protected pension age, you should take appropriate advice in relation to a transfer as the transfer may cause you to lose these protections. Some detailed guidance regarding further considerations can be found on the HMRC website.

Pension scams

You should take appropriate advice in relation to your own individual circumstances prior to making a decision to transfer your pension overseas.

Fidelity and/or the Trustees of the ceding scheme may perform due diligence checks on the receiving scheme in order to protect members from pension scams. We encourage you to read our page on pension fraud which contains important information about how to avoid this happening to you.