International pension transfers
Produced in partnership with Sean McNulty of Blake Morgan

The following Pensions practice note produced in partnership with Sean McNulty of Blake Morgan provides comprehensive and up to date legal information covering:

  • International pension transfers
  • Transfer to a QROPS
  • HMRC measures applicable on a QROPS transfer
  • What if the transfer includes a transfer of benefits in payment?
  • What if the transfer involves 'safeguarded benefits' worth more than £30,000?
  • What if the transferring scheme is a public service pension scheme?
  • Effect of transfer on the lifetime allowance
  • Effect of transfer on the annual allowance
  • Other considerations applicable before making a transfer to a QROPS
  • The overseas transfer charge
  • More...

International pension transfers

CORONAVIRUS (COVID-19) UPDATE: Through Pension Schemes Newsletter 128 and Pension Schemes Newsletter 121, HMRC announced that it will cancel penalties received in relation to the late reporting of an overseas pensions transfer (ie beyond 60 days) if the delay is due to resources being affected by coronavirus. This flexibility will apply until 30 June 2021.
For further information on the implications of coronavirus on pension schemes, see Practice Note: Coronavirus (COVID-19)—the pensions implications for trustees.

Pension rights may be transferred from one scheme to another. To avoid any adverse tax consequences under the Finance Act 2004 (FA 2004), a transfer from a UK-registered pension scheme must constitute a 'recognised transfer' as such a transfer is expressly recognised at FA 2004, s 164(1)(c) as a type of authorised member payment.

This Practice Note covers the considerations applicable on:

  1. the only type of recognised transfer possible from a UK-registered pension scheme to an overseas pension arrangement (namely a transfer to a Qualifying Recognised Overseas Pension Scheme (QROPS))—for further information, see: Transfer to a QROPS, below

  2. transfers from a UK-registered pension scheme

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