What are the QROPS Limits for Pensions Overseas?

For pensions overseas to accept transfers in from a UK pension scheme, the receiving scheme must be a Qualifying Recognized Overseas Pension Scheme (QROPS).

In certain jurisdictions there are no limits and it is possible to withdraw your entire fund as a lump sum depending on your personal circumstances. Australia, the Isle of Man, Malta and New Zealand all allow greater than the 25% that is permitted from a UK scheme.

Income levels are generally more flexible from a QROPS and it is possible to take income or lump sums each year depending on which would receive the most favourable tax treatment in the country of your residence.

The income that can be payable from pensions overseas, in respect of a UK transfer, for members with less than 5 years of residency outside of the UK, must not exceed the benefits that would be paid from a UK scheme.

Once an individual has been outside the UK for 5 complete UK tax years these limits fall away. To find out more about your options please complete the quick enquiry request form.