QROPS Advice and HMRC

QROPS stands for qualifying recognised overseas pension schemes which is basically a scheme for UK citizens allowing them to transfer pension funds from UK to another country. Her majesty’s Revenue and Customs or HMRC is the regulatory authority for QROPS transfers and they ask for certain information to be revealed by QROPS providers. HMRC regulates QROPS transfers through a no. of legislation and it own set of rules like HMRC 6. The QROPS provider undertakes to provide some information to HMRC to get the transfer of funds approved.


The member who is to receive benefit payments from this plan should have been tax resident in UK when the payment was made or treated as being made, or if not tax resident, they should be resident in UK for the year in which tax payment is made or in any of the preceding five tax years in which the payment is made. This is an annual reporting obligation of QROPS providers and it ends after five years. Some countries may have a double taxation agreement with the UK. QROPS does not need to provide information on this but HMRC can request the details.


HMRC regulates the non-UK pension schemes which have an indirect relation to QROPS.