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QROPS and the Overseas Transfer Charge: What Remains Available?

  • Writer: Louisa Dimech Anastasi
    Louisa Dimech Anastasi
  • 1 day ago
  • 2 min read

Following the Autumn Budget 2024, advisers should be clear on what remains available under the QROPS and Overseas Transfer Charge framework.


The Overseas Transfer Charge remains at 25% where no exemption applies. The key point is that the former EEA/Gibraltar exemption is no longer broadly available for transfers made on or after 30 October 2024. Instead, the main remaining exemptions are centred on genuine residence and certain employment-linked arrangements.


In broad terms, an overseas transfer may still avoid the charge where:

  • the member is resident in the same country as the QROPS,

  • the QROPS is an occupational scheme and the member is employed by the sponsoring employer,

  • the QROPS is an overseas public service scheme and the member is employed by a participating employer, or

  • the QROPS is an international organisation scheme and the member is employed by that organisation.


It is also important to remember the five-year relevant period. If circumstances change after the transfer, an exemption that applied initially may no longer be sustainable, and the charge can become relevant retrospectively.


For advisers, this means the focus has shifted away from jurisdiction shopping and toward evidence-based planning, residence sequencing, and ongoing monitoring.


Adviser takeaway

The remaining exemptions are narrower and more fact-specific. Residence and post-transfer monitoring now matter far more than jurisdiction alone.


Disclaimer

This newsletter is provided for general information only and is intended for financial professionals. It does not constitute legal, tax, investment, or pension advice, nor should it be relied upon as a substitute for advice tailored to any individual circumstances. The treatment of pension transfers and overseas pension arrangements depends on specific facts, residence status, scheme rules, and applicable legislation. Readers should seek appropriate professional advice before taking or refraining from any action.

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