Glossary · UK
What is Overseas Transfer Charge?
A 25% tax charge that can apply when transferring a UK pension to certain overseas schemes.
Full Definition
The overseas transfer charge is a 25% tax charge that HMRC can apply to a QROPS transfer where none of the standard exemptions are met — for example, where the member is not resident in the same country as the receiving scheme and is not resident in the EEA when both the scheme and the member are within it. The charge is deducted by the transferring UK scheme before the transfer is paid, and additional charges can also arise later if the member's circumstances change within five years of the original transfer.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.