QROPS FAQs

A Qualifying Recognised Overseas Pension Scheme, or QROPS, is an overseas pension scheme into which UK pension rights can be transferred. The scheme must meet certain criteria set out by HM Revenue and Customs (HMRC) and act as if it were a UK scheme for QROPS members who have been resident in the UK at any time in the previous five tax years.

A QROPS can offer significant taxation and investment advantages, allowing many UK pension holders to get more out of their UK pension. It provides:

• Greater control over where your pension fund is invested
• Tax efficiency – you may be able to substantially reduce the tax that you would have to pay when accessing your pension
• Inheritance benefits – you can pass on your pension pot to your beneficiary upon death
• Simplicity – numerous pensions can be consolidated in one QROPS.

The key attraction of transferring UK pension rights to a QROPS for those who have been non-UK resident for at least five tax years is that the pension fund becomes subject to some of the laws of the relevant overseas jurisdiction.

Since the Finance Act 2008 the argument for transferring UK pension rights to a QROPS for the expat has become even more compelling. Among other advantages is, for example, the fact that the UK requirement to purchase an annuity by age 75 (or be faced with the prospect of a possible 82% tax charge) no longer applies.

As a multi-jurisdictional administrator and trustee, we offer a wide range of options when you transfer your pension fund overseas.
Because we offer QROPS in Gibraltar and Guernsey (with Luxembourg and Switzerland soon to follow), we’ll find you the jurisdiction that best suits your needs. STM are recognised in the UK by the HMRC. And because we’re committed to our clients, we give the very best in independent QROPS information.

QROPS came into being on pensions ‘A’ day, 6 April 2006, when the British government radically overhauled its pensions system. Since then, people with UK pensions who are, or will become, non-resident in the UK for tax purposes can move their pension benefits out of the UK to a QROPS.

You can apply for a QROPS pension transfer if you are a UK non-resident between the ages of 18 and 75.

Yes, providing you intend to leave the UK within the next 12 months.

We can accept any assets into our QROPs scheme. There is no need to liquidate assets before transfer.

No, you must transfer to a QROPS before you buy an annuity. If you are taking a pension from the fund, you can still transfer it.

No, QROPS is for private pension schemes only.