A Guide to QROPS
If you are considering moving abroad as an expat and you want to take your pension scheme with you, it is highly advised that you keep up to date with the list of QROPS pension schemes on the HMRC website. A QROPS (Qualifying Recognised Overseas Pension Scheme) is a pension scheme that has been recognised by HM Revenue & Customs for meeting certain conditions. One of the most important stipulations, is that the holder can transfer their pension to the new pension scheme when moving overseas, without incurring a scheme sanction charge.
Recently QROPS came into the news when there was an increase of fraudulent companies (most notably in Singapore) claiming to provide QROPS. Since a landmark case in Singapore was resolved in June 2013 (where the HMRC was taken to court by members of the Rosiip scheme – read about it here), there has been an improved transparency within the industry and the way that HMRC presents the list of QROPS. This change has brought about an increase in trust in the list and it is now widely accepted as a recognised resource.
There are currently just over three thousand recognised schemes on the list that cover the majority of Europe, Norway, Iceland, Ireland, America, Australia and any country that has a Double Taxation Agreement with the UK. To become a QROPS, a scheme must operate broadly within the UK pension rules, as well as being recognised as operating within the rules of the country it resides. The list is regularly updated and can be found on the HMRC website here.
When moving abroad with Cadogan Tate you will be assigned a move co-ordinator, who will be able to advise you on all the logistical steps of your international move, as well as providing detailed country guides and checklists to ensure that your move goes as smoothly as possible. For more details about how Cadogan Tate can help you, please click here.
Information correct at time of publication