QROPS Frequently Asked Questions (FAQs)

  1. Q. What are the obligatory reporting requirements?
    A. A QROPS must provide HMRC with details of all benefit crystallisation events for the first 5 complete and consecutive tax years that a member is non resident in the UK. The benefit crystallisation event information required is:

    1. the name and address of the relevant migrant member or individual (as the case may be) in respect of whom there has been a benefit crystallisation event in the tax year; and
    2. the date, amount and nature of the benefit crystallisation event.
  2. Q. What types of pension can be transferred?
    A. Transfer can be made and received from the following schemes, and multiple schemes are acceptable:
    • Small Self-Administered Schemes (SSAS)
    • Self Invested Personal Pensions (SIPP)
    • Personal Pensions (PP)
    • Defined Contribution Schemes
    • Defined Benefit Schemes
    • Additional Voluntary Contributions (AVC)
    The only exceptions are the state pension and final salary schemes in payment.
  3. Q. What is the Taxation status?
    A. Tax Free Roll-Up within the fund. Tax payable on QROPS distribution is dependent on the QROPS jurisdiction, and the Member’s country of tax residency (Members should always seek independent professional tax advice prior to drawing any benefits).
  4. Q. What are the Fund size limits?
    A. There are no limitations on the fund size transferable to a QROPS.
  5. Q. How are QROPS Regulated?
    A. Qualifying Recognised Overseas Pension Schemes (QROPS) are Pre-Registered with Her Majesty’s Revenue & Customs (HMRC), in addition to being approved in the jurisdiction where they are based.
  6. Q. Who is eligible?
    A. QROPS are open to all nationalities who are leaving or have already left the UK with accrued UK pensions.
  7. Q. What is the retirement age?
    A. Normal Retirement Age of 65 and Early Retirement Age of 55.
  8. Q. How can I draw benefits?
    A. Provided that an individual is of Retirement Age a pension may be drawn in the form of:
    • Pension Commencement Lump Sum (PCLS). If the QROPS Member has not already drawn PCLS, (formerly known as Tax Free Cash), they are eligible to do so (up to 30% of Fund value).
    • Income stream. The Member may wish to draw an income stream from their QROPS. QROPS allows for an income stream to be paid from the Members fund, up to the maximum permitted by the relevant regulatory authorities.

If you have any further questions please Contact us and one of our dedicated team will be happy to help address your query.

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