+44 191 359 2115


+44 191 359 2115



Qualifying Recognised Overseas Pension Schemes

A QROPS, or Qualifying Recognised Overseas Pension Scheme, is an overseas pension scheme. HM Revenue & Customs (HMRC) views QROPS as eligible for transfers from pension schemes in the UK.
To limit the use of QROPS, the UK government has imposed a transfer tax of 25% on any transfers outside the EEA. This is if the scheme is not in the same country as the member resides.
This makes QROPS unsuitable for most USA residents.
Benefits of QROPS
  • No Lifetime Allowance
  • Your pension will pass to your family
  • Less tax on your pension benefits
  • Pension paid in currency of your choice
  • Protection from creditors in the event of a divorce

Frequently asked questions

Questions about QROPS

What types of pension can I transfer to a QROPS?

Most types of pension schemes can transfer where there is a transfer value (e.g NOT UK State Pensions). The exception: unfunded public sector schemes such as NHS pensions.

Will I have to pay UK taxes?

A pension scheme in the UK will deduct tax at source on pension income paid. Unless there is a double taxation agreement in place where you now live and HMRC agrees to pay gross and provides a tax code.

Can I take my pension in US dollars?

Pension schemes such as SIPPS can pay benefits in multi-currencies.

Is there a minimum amount I can transfer to a QROPS?
There is no formal fund size. Small funds may not be viable to transfer as the costs may outweigh the benefits.
You should consider a QROPS if your pension funds are over £30,000
How long does it take to transfer a pension?

This depends on the type of transfer and the parties involved. A rule of thumb is 4-12 weeks.

Is flexible drawdown available?

Defined contribution pension schemes can offer flexible drawdown. It depends on providers rules. You may need to transfer your pension to get this.

Are QROPS suitable in the USA?

USA residents can use QROPS. But, they will be subject to the 25% transfer tax introduced by the UK government. This is where the transfer is outside the EEA and not within the country where you live.

Share This