UK pensions tax treatment of internationally mobile employees and members
UK pensions tax treatment of internationally mobile employees and members

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • UK pensions tax treatment of internationally mobile employees and members
  • UK tax relief on pension contributions to an overseas pension scheme—migrant relief
  • What is a QOPS?
  • Tax treatment of pension benefits paid by an overseas pension scheme
  • What is a Relevant Non-UK Scheme (RNUKS)?
  • Tax treatment of overseas individuals who are members of UK registered pension schemes
  • Scope of auto-enrolment regime for internationally-mobile workers
  • EU rights of members who move to another Member State
  • Transferring pension funds to and from overseas pension schemes

Since A-day (6 April 2006), the main elements of the tax regime applicable to overseas employees and other individuals who are members of overseas pension schemes are as follows:

  1. migrant member tax relief can be obtained from UK tax on contributions to a 'qualifying overseas pension scheme' (QOPS) in certain circumstances. For more information, see UK tax relief on pension contributions to an overseas pension scheme—migrant relief, below

  2. members of a QOPS may be subject to UK tax charges in certain circumstances even when they have ceased to be tax resident in the UK. For more information, see Tax treatment of pension benefits paid by an overseas pension scheme, below

Overseas employees and other individuals who are members of UK-registered pension schemes are subject to different rules. For more information, see Tax treatment of overseas individuals who are members of UK registered pension schemes, below.

UK tax relief on pension contributions to an overseas pension scheme—migrant relief

UK tax relief on pension contributions made by, or on behalf of an individual to an overseas pension scheme (OPS), qualifying non-UK pension scheme (QNUPS), recognised overseas pension scheme (ROPS) or qualifying recognised overseas pension scheme (QROPS) is not automatically available. Such relief, which is known as migrant relief, is only available if the overseas pension scheme constitutes a qualifying overseas pension scheme (QOPS)