Overseas aspects of pension schemes

STOP PRESS: In the Autumn Budget 2024 of 30 October 2024, the key pensions announcements included reducing tax-free overseas transfers of tax-relieved UK pensions. To give effect to this the government will introduce legislation in a new Finance Bill 2024-25 to:

—remove the exclusion from the Overseas Transfer Charge for transfers to Qualifying Recognised Overseas Pension Schemes (QROPS) in the European Economic Area (EEA) or Gibraltar from 30 October 2024 to address the risk of individuals receiving double tax-free allowances

—bring the conditions of Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) established in the EEA in line with OPS and ROPS established in the rest of the world, with effect from 6 April 2025

—require scheme administrators of registered pension schemes to be UK-resident from 6 April 2026

HMRC published its Pension Schemes Newsletter 164 for October 2024, which contains a summary of all the announcements in the Autumn Budget 2024 in connection with tax-relieved pension savings, and has also updated some of its guidance and a number of sections in the Pensions

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Pensions News

Government urged to act on critical pension transfer delays

Law360: The government must step in to mandate faster retirement saving transfers, a pensions provider warned on 28 April 2025, saying that in some cases customers have been left waiting three years for the process to complete.

TPR’s Annual Funding Statement issues covenant warning amid tariff wars

Law360: The Pensions Regulator (TPR) warned defined benefit (DB) pension schemes on 29 April 2025 to be mindful of the impact of global trade tariffs as it said it had found that more than half of DB schemes have a funding surplus. TPR said that geopolitical volatility is expected to continue, and this may have an impact on scheme funding.

TPR publishes first Annual Funding Statement under new DB funding code

The Pensions Regulator (TPR) has published its Annual Funding Statement, the first under the new defined benefit (DB) funding code implemented in November 2024. The statement reveals 54% of schemes are in surplus on a buyout basis, with higher percentages for other measures. TPR expects 80% of schemes to meet Fast Track requirements, while introducing a new digital valuation submission service. The guidance applies to schemes with valuation dates between 22 September 2024 and 21 September 2025, with additional endgame planning guidance forthcoming.

Government floats fix for spiraling number of small pension pots

Law360: The government unveiled final plans on 24 April 2025 to tackle the growing number of small forgotten pension pots, in a move that could boost savings for workers and save the retirement industry hundreds of million of pounds.