QROPS stands for Qualifying Recognised Overseas Pension Scheme which, in essence, is a personal pension scheme established outside the United Kingdom but which is recognised by HMRC - Her Majesty's Revenue & Customs.
You may transfer your existing UK pension into a Malta based retirement scheme and receive your benefits free of Malta tax, provided that you are not resident in Malta and there is a Double Taxation treaty between your country of residence and Malta. A QROPS is open to residents of any country (including Malta) and a list of the schemes is available on Her Majesty’s Revenue & Customs (“HMRC”) list of Qualifying Recognised Overseas Pension Schemes.
For members who have been non-resident in the UK for five complete tax years the UK restrictions on pension funds disappear but for members who have been resident in the UK within the last five complete tax years the UK restrictions on the operation of the pension scheme will still apply.
Reporting of certain events continue to HMRC for ten years from transfer. They include the commencement of income benefits, Lump Sums and Transfers to other pension schemes and the passing of the fund on death.
Please contact us if you want more information about the flexible benefits changes that started in April 2015.
When was QROPS introduced?
In April 2006 – known as “A” Day - the UK government introduced the concept of QROPS to simplify the administration of transfers from a UK scheme to one in another country. Prior to this each transfer had to be individually approved and this had become impractical with the large number of people settling permanently outside the UK.
What is the future of QROPS?
QROPS legislation has been reinforced in April 2015, with Malta enjoying the benefits of being a full EU member. If, having moved to a QROPS with us, you want to move your pension back to the UK, you can do so - please contact us to discuss your requirements.
Who Qualifies for a QROPS?
Broadly anyone who has worked in the UK and earned income that has been paid with tax relief into a Registered Pension Scheme. If you are moving abroad or have already moved, then you may want to consider transferring your UK pension savings to an MCT Malta QROPS.
What UK pensions can be considered for a transfer to a QROPS?
The following recognised pensions can be transferred:
- Personal Pensions
- Final Salary Pensions
- Money Purchase
- Section 32 and Section 226
- Civil Service; Armed Forces
- Protected Rights/GMP
For more information about our Retirement Scheme products click here.