The Qualifying Recognised Overseas Pension Schemes (ROPS) List The Qualifying Recognised Overseas Pension Schemes (ROPS) List

The Qualifying Recognised Overseas Pension Schemes (ROPS) List
16 Aug 2018

The ROPS list is a must-read for all UK payroll and pensions professionals.  It is updated twice-monthly on the 1st and the 15th of the month and is a list of all overseas pension schemes that have advised HMRC that they want to be included on it.  The word “recognise” indicates that HMRC recognise that the overseas pension scheme as being one that is eligible to receive transfers of UK pension benefits. 

ROPs were the subject of changes announced in the 2017 Spring Budget.  The Finance Act of that year introduced a 25% tax charge to pension transfers requested on or after the 9th of March 2017, though there are many exceptions.  The exceptions basically ensure that transfers are tax free where there is a genuine need to transfer the pension overseas.

Also, the same Finance Act also introduced tax changes from the 6th of April 2017.  UK tax rules will apply where payments are made from ROPS that have previously had UK tax relief applied.  These rules will apply to any payments made in the first 5 full tax years following the transfer.

Further reading

  • Check the recognised overseas pension schemes notification list (the 1st of the 15th of the month)
  • Spring Budget 2017 (point 3.46)
  • Tax Information and Impact Note (TIIN) Qualifying recognised overseas pension schemes: charge on transfers

 

The ROPS list is a must-read for all UK payroll and pensions professionals.  It is updated twice-monthly on the 1st and the 15th of the month and is a list of all overseas pension schemes that have advised HMRC that they want to be included on it.  The word “recognise” indicates that HMRC recognise that the overseas pension scheme as being one that is eligible to receive transfers of UK pension benefits. 

ROPs were the subject of changes announced in the 2017 Spring Budget.  The Finance Act of that year introduced a 25% tax charge to pension transfers requested on or after the 9th of March 2017, though there are many exceptions.  The exceptions basically ensure that transfers are tax free where there is a genuine need to transfer the pension overseas.

Also, the same Finance Act also introduced tax changes from the 6th of April 2017.  UK tax rules will apply where payments are made from ROPS that have previously had UK tax relief applied.  These rules will apply to any payments made in the first 5 full tax years following the transfer.

Further reading

  • Check the recognised overseas pension schemes notification list (the 1st of the 15th of the month)
  • Spring Budget 2017 (point 3.46)
  • Tax Information and Impact Note (TIIN) Qualifying recognised overseas pension schemes: charge on transfers