UK pensions tax treatment of internationally mobile employees and members

The following Pensions practice 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
  • General
  • Member payment provisions
  • To whom do the member payment provisions apply?
  • What is a Relevant Non-UK Scheme (RNUKS)?
  • Tax treatment of overseas individuals who are members of UK registered pension schemes
  • Tax relief on member contributions for relevant UK individuals
  • More...

UK pensions tax treatment of internationally mobile employees and members

Since A-day (6 April 2006), the main elements of the UK tax regime applicable to 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 further 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 further 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 further 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

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