Glossary · UK
What is Qualifying Recognised Overseas Pension Scheme (QROPS)?
An overseas pension scheme that meets HMRC conditions, allowing UK pension benefits to be transferred abroad without an unauthorised payment charge.
Full Definition
A Qualifying Recognised Overseas Pension Scheme (QROPS) is a non-UK pension arrangement that satisfies HMRC rules, enabling UK-registered pension savings to be transferred to it. QROPS were introduced in 2006 and are often considered by people who have left, or plan to leave, the UK permanently. Transferring to a non-qualifying overseas scheme can trigger an unauthorised payment charge of up to 55%, so QROPS status matters. Since March 2017 an Overseas Transfer Charge of 25% applies to many transfers unless an exclusion is met, for example where the individual and the scheme are in the same country or both within the European Economic Area at the time of transfer; the EEA exclusion was significantly tightened from October 2024 so that transfers to the EEA and Gibraltar can now attract the charge. Transfers also count against the individual Overseas Transfer Allowance, broadly aligned with the Lump Sum and Death Benefit Allowance of 1,073,100. Reporting obligations continue for several years after transfer. QROPS decisions are complex and carry scam risk, so regulated advice is strongly recommended.