Qualifying Recognised Overseas Pensions Scheme

Qualifying Recognised Overseas Pensions Scheme

A QROPS also known as a ROPS, is an overseas pension scheme that meets HMRC’s conditions to accept transfers of previously accrued UK pension benefits to a scheme offering flexibility, tax efficiency and multi-currency options.

This allows flexibility for UK residents and those who have left or intend to leave the UK.

The concept, which was introduced in April 2006 (known as “A” day) as part of pension simplification, was adopted at the insistence of the EU as part of its freedom of movement of income and labour.

Prior to the introduction of QROPS, pension schemes had to be transferred to the country of residence of the member. QROPS opened up the opportunity of third-party jurisdictions and professional QROPS providers. HMRC introduced a list of pension schemes that notified HMRC that they met the conditions to be QROPS and transfers could be made to schemes on that list.

The two main QROPS jurisdictions of choice are Gibraltar and Malta. All QROPS are licensed and regulated by the jurisdictional Financial Services Authority and are submitted on HMRC’s register.

The advice process involved in implementing a QROPS requires specialist knowledge across a number of different fields of expertise. We will ensure that the advice we provide is fully compliant including FCA Compliant Suitability Report, independent tax advice and provider due diligence reports to provide you with the necessary information to make an informed choice for your planning objectives.

The tax regime of the retirement and death benefits in the QROPS jurisdiction and the country in which the individual is resident will impact whether such schemes are appropriate in a particular case.