QROPS


Qualifying Recognised Overseas Pension Scheme, or QROPS is an overseas pension scheme that meets certain requirements set by Her Majesty’s Revenue and Customs(HMRC).

A QROPS must have a beneficial owner and trustees, and it can receive transfers of tax-relieved UK pension benefits. The QROPS programme was part of UK legislation launched on 6 April 2006 as a direct result of EU human rights requirements of the freedom of capital movement.

A QROPS was later renamed ROPS (Recognised Overseas Pension Scheme), but is still popularly known as a QROPS.

A QROPS is suitable for UK pension holders who wish to emigrate abroad permanently and transfer their pension schemes out of the UK tax net.

Both defined contribution & defined benefit pension schemes can be transferred, although HMRC frowns on final salary pension transfers due to the loss of a guaranteed pension income for life.