A Qualifying Recognised Overseas Pension Scheme is an international pension plan, recognised by HMRC. As an international plan, it can benefit from local taxation and adapt to your changing circumstances - particularly of use for those retiring offshore where residency and taxation are a key component of long-term income planning. When you transfer your UK pension into a QROPS, it is no longer subject to the ever-changing UK pension legislation, can benefit from improved tax efficiency for those resident outside of the UK for at least ten years, and does not carry a pension lifetime allowance when tested on transfer from the UK.
A QROPS has to meet certain criteria. It must be:
- Established outside of the UK
- Recognised for tax purposes in the country where it's located
- Regulated in the country where it's established.