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 to overseas arrangements other than a QROPS—for further information, see: Transfer to an overseas pension scheme other than a QROPS, below

3. •

   transfers from overseas arrangements to a UK-registered pension scheme—for further information, see: Transfers from overseas pension schemes

Between 13 January 2019 and IP completion day (11 pm on 31 December 2020), additional requirements applied to cross-border transfers, ie bulk transfers between UK occupational pension schemes and EU pension