The ability of UK ex-pats to transfer their former built up UK pension benefits into a pension in the country they now plan on living in to retire is a highly specialised area of financial planning which we are considered experts on. Planning in this area is known as a “transfer” to a QROPS.
QROPS stands for ‘qualifying recognised overseas pension scheme’. A QROPS is an overseas pension scheme that HM Revenue & Customs (HMRC) recognises as eligible to receive transfers from registered pension schemes in the UK.
To qualify as a QROPS the scheme must meet the requirements set by UK tax law, such as being available to residents in that country and not being accessible before age 55 unless under special circumstances.
However, a firm providing advice in this area must not only know the HMRC QROPS rules, but they must also take into consideration the tax rules in the client’s country of residence.