QROPS: transferring a UK pension abroad

What does QROPS mean if I transfer pension savings abroad?

QROPS stands for qualifying recognised overseas pension scheme. The scheme must qualify for a UK pension transfer to be recognised. Its status does not promise a tax-free transfer.

A transfer outside the recognised routes can be an unauthorised payment and taxed accordingly. Start with the UK pensions abroad guide before deciding whether a transfer is needed.

See the Budget tracker for announcements and effective dates.

How much is the overseas transfer charge?

The overseas transfer charge is 25% of the transferred value unless an exclusion applies. Even an excluded transfer can face a 25% charge on the amount above your available overseas transfer allowance.

Your overseas transfer allowance equals your lump sum and death benefit allowance, reduced by earlier QROPS transfers. The standard lump sum and death benefit allowance has been £1,073,100 since 6 April 2024, unless you have protection for a higher amount.

What changed on 30 October 2024?

The broad exclusion for transfers to QROPS in the EEA or Gibraltar was removed. Living in the UK or elsewhere in the EEA no longer gives that exclusion just because the receiving scheme is in the EEA or Gibraltar.

The old exclusion only covers transfers requested before 30 October 2024 and completed before 30 April 2025. The overseas transfer charge itself applies to recognised transfers requested on or after 9 March 2017 unless an exclusion applies.

Which overseas transfer charge exemptions remain?

An exclusion can still apply when you are tax resident in the same country where the QROPS is established.

The employment exclusions cover an occupational scheme sponsored by your employer, an overseas public service scheme in which your employer participates or a scheme set up by an international organisation for its employees’ past service, where you are an employee. An international organisation does not simply mean a multinational employer.

You must give the scheme administrator the required information before the transfer. These exclusions do not remove a charge on the part above your available allowance.

How long does the five-year rule last?

An initially uncharged transfer can become chargeable if your circumstances change during the relevant period. That period runs from the transfer to the next 5 April, then for a further 5 tax years.

HMRC’s example is a transfer on 13 June 2017 with a relevant period ending on 5 April 2023. The period is longer than five calendar years from the transfer date. Check the consequences before changing country during it.

Does the HMRC ROPS list guarantee a tax-free transfer?

No. The HMRC recognised overseas pension schemes notification list records schemes that have notified HMRC. HMRC does not guarantee that they are ROPS or that transfers to them are free of UK tax.

HMRC publishes updates on the 1st and 15th of each month. HMRC's list of recognised overseas pension schemes is dated 15 October 2026. Check the receiving scheme’s status and the tax treatment of your own transfer.

What should I check before transferring?

Check residence in both countries, the receiving scheme and your remaining overseas transfer allowance. Keep the information supplied to the administrator and consider how a later move could affect the exclusion.

Use the statutory residence test guide and moving abroad checklist for the UK side. The frozen State Pension guide covers annual State Pension increases, a separate issue from transferring a private pension.