UK pensions tax treatment of internationally mobile employees and members

Copyright © 2025 LexisNexis
Published by a LexisNexis Pensions expert
Practice notes

UK pensions tax treatment of internationally mobile employees and members

Copyright © 2025 LexisNexis

Published by a LexisNexis Pensions expert

Practice notes
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Since A-day (6 April 2006), the main elements of the UK tax regime applicable to employees and other individuals who are members of foreign 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 further information, see: UK tax relief on pension contributions to an overseas pension scheme—migrant relief, below

  2. •

    members of overseas pension schemes (OPS) or relevant non-UK schemes (RNUKS) may be subject to UK tax charges in certain circumstances, even if they are not a UK resident. For further information, see: Tax treatment of pension benefits paid by a foreign pension scheme (not being a HMRC-registered pension scheme), below

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

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

UK tax relief is not automatically

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Jurisdiction(s):
United Kingdom
Key definition:
Employee definition
What does Employee mean?

Persons satisfying case law tests for employee status qualify for the broadest scope of employment protections. Statutory definitions of employee vary. The Employment Rights Act 1996 defines employee as an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

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