Qualifying Recognised Overseas Pension Schemes (QROPS) enable
individuals who have left the UK to transfer their UK pension
benefits into a more flexible and often lower tax regime.
Changes introduced by HMRC on 6 April 2006, a date commonly
referred to as 'A Day', mean that anyone wishing to
transfer their UK pension benefits overseas can do so, so long as
their overseas pension scheme is a QROPS, otherwise any such
transfer would be subject to substantial HMRC exit charges.
To be recognised as a QROPS the scheme must demonstrate that it
satisfies criteria set out by HMRC. This ensures that the
characteristics of the overseas scheme remain similar to those of a
UK Registered Scheme in terms of being recognised for tax purposes,
having certain restrictions in terms of pension ages and lump sums
and, where the country in which the pension scheme is established
operates a regulatory regime, the scheme is duly regulated.
