Pension plans based abroad can only receive a UK tax-free transfer from a registered pension scheme if it’s a qualifying recognised overseas pension scheme (QROPS). Owners of these schemes will need to tell HMRC about payments from these savings plans that have received UK tax relief.
HMRC has a list of recognised overseas pension schemes (ROPS) that have told the Government they meet the conditions to be a recognised scheme.
However, HMRC warned they cannot guarantee the schemes listed are ROPS or that any transfers to them will be free of UK tax.
It will be up to individual pension holders to find out if they have to pay tax on any transfer of pension savings.
Where overseas transfer charges apply, the scheme managers must tell members (or the holders) certain information within 90 days of the transfer.
However, they may have to pay tax in the country they live in.
There are exceptions to this, with an example being that UK civil service pensions will always be taxed in the UK.
Full details on pension tax arrangements can be found on the Government’s website.
Additionally, impartial guidance can be sought from the likes of the Money Advice Service, Pension Wise and Citizens Advice.
Published at Thu, 08 Apr 2021 18:38:30 +0000