QROPS 5 Year Tax Rule

Hiya, I moved to the UK in 2011 and was employed and received a small pension. In 2013 I intended to return back to NZ permanently so transferred my pension to my NZ scheme in 2013. Life then changed and I ended up returning to the UK that same year and working there until I then returned to NZ permanently Nov 2021. When does the five years start for me?

Hi, I am looking to immigrate to Australia and transfer my UK pension plan to a QROPS Fund in Australia. However, I have more than the Australian government's allowance of $330,000 AUD. As this exceeds the cap, The Australian government will require me to withdraw the excess amount above their cap, which is paid to them, and inturn, paid to me. Will the HMRC impose tax on this compulsory withdrawal if it occurs within 5 years of the transfer? Thanks

Hi Jaime Stewart,
Please refer to guidance here:
Pension schemes
Thank you. 

Hi Brett Griffiths.
please refer to guidance here:
Pension schemes
Thank you. 

Hi, I understand the five-year tax rule. If in year six I want to transfer £500k to a Canadian Registered Retirement Savings plan (RRSP), would there be any UK tax implications? Thanks Tammy

Hello - I've read through the thread but I'm not sure my questions have been answered. I relocated to Canada 20 years ago and have been resident for tax purposes there throughout. I transferred my DB pension under the QROPS scheme in 2022. I'd like to start drawing GBP.5,000 monthly from that balance but want to ensure I'm not liable to UK tax (I will pay Canadian tax on those withdrawals). There is no intent to withdraw large lump sums at any time and I will only be using the balance to support the monthly withdrawal. Will this trigger any UK tax consequences and, if so, at what point are those consequences avoidable. Thanks for any insights.

Hi Tammy Dodd,
There may be.
Please see guidance ahere:
PTM112010 - International: qualifying recognised overseas pension schemes (QROPS): introduction
Thank you. 

Hi,

Please refer to guidance at:

Transferring your pension

Thank you.

If I transfer my pension to an Irish QROPS , then need to draw some income before end of five years, would double taxation agreement mean I can avoid paying both UK and Irish tax on the same income?

I'm still not clear on the 5 year rule. I understand that if I move and transfer my pension at the same time, the 5 year residency rule applies from the day I arrive. However, if I moved 20 years ago and have been a Canadian resident for tax purposes since then, and only moved my UK pension last year, have I already met the 5 year requirement by virtue of my residency period in Canada or does the 5 year clock start ticking when the pension is moved. Thanks Dave

Hi Norma Barrett,
Please have a look at PTM102200 onwards.
PTM102200 - Transfers: transfers to a QROPS: essential principles of the overseas transfer charge
A charge to UK tax may apply where the conditios of the QROPS transfer are not met.
Thank you. 

 

Hi David Newby,

It is from when the pension is moved.

Thank you.

I have been an Australian resident and citizen for 17 years, living and paying Australian taxes for the entire time. I tansfered my UK pensions to a Australian based QROPS SMSF in September 2018, thus satisfying the 5 year rule. I now want to roll this QROPS SMSF over to a non-QROPS Industry Superannuation fund (this is all ok as far as Australian supefunds are concerned). Can I please get confirmation that there are no UK HRMC tax implications. I believe I tick all the boxes as far as the guidelines are concerned but would just like clarification on this, thanks.

Hi,

Please refer to:

PTM112010 - International: qualifying recognised overseas pension schemes (QROPS)

Thank you.

I am confused about QROPS and PTM112010. It states 'Certain tax charges known as the member payment charges can apply for 10 full tax years following the tax year in which the member left the UK". Nothing I read can tell me if this applies to lump sum payments taken from age 55? If I left my USS pension in the UK I could take a 25% lump sum tax-free. However, although I completed the transfer to a NZ QROPS over 5 years ago and have been a NZ (and only NZ) tax resident for 7 years it seems I have less access to my pension because of this 10 year rule. The purpose of the QROPS rules was to make the conditions similar to the UK pension, but this makes it considerably different and prevents a tax-free lump sum. Why are 25% lump sum payments taxed in QROPS but are tax-free in the UK?

Hi Anita,
This has been a legislative decision.
Thank you. 
 

Dear Admin 25. I'm sorry but the reply to my post is very short and not useful. Can you please tell me if the 10 year rule in PTM112010 does or does not apply to the 25% lump sum that would be tax free in the UK.?The current wording is "can" apply and it does not say what it specifically applies to. You are currently saying "yes you might be taxed but we won't tell you until after you withdraw the lump sum". That is not an appropriate reply for a government service.

Hi, moved to NZ in Oct 2006. Have lived and worked here since. Transferred pensions to QROPS in Dec2014/Jan 2015. Have now turned 55. Funds have been here 9 years. Is it correct I can now access funds with any uk tax liability.

Hi Richard,
The five-year rule was introduced when QROPS were first established in 2006.
It applies to the first five years of your residency status if you transferred your pension to a QROPS before 6 April 2017.
Ultimately you must have been UK non-resident for five consecutive tax years ahead of retiring or beginning to draw from your QROPS.
As you meet this criteria, then yes  you can now access without any UK tax liability.
Thank you. 

Hi. I moved to Canada in 2001 and became a Canadian citizen a couple of years after that. I transferred my UK company pension to a Canadian QROP Registered Retirement Savings Scheme (RRSP) in 2016. By law, in Canada this year (when I turn 71) I have to transfer my RRSP to a Registered Retirement Income Fund (RRIF) that has an annual compulsory withdrawal amount. The Bank that holds the RRSP no longer provides has QROP accounts. Will I be liable to UK tax and or penalties when I make the legally required transfer to a non- QROP RRIF