QROPS 5 Year Tax Rule

I posted my query above, about converting my Canadian QROP RRSP to a non-QROP RRIF. After the post I discovered the UK Gov QROP contact information and sent my question to them. They replied within 2 working days with the answer that, as I have been resident in Canada since 2002 and my pension was transferred before 2017 (actually 2015 not 2016 as I wrote above) I will not be liable to UK tax or penalties on my transfer. Hope this helps someone in a similar situation Regards

In 2014 I moved abroad and ceased to be resident for UK tax purposes. In late 2014, after moving abroad, I transferred by UK personal pensions to a QROP to my new place of residence. In 2022 I drew my 30 per cent lump sum from the QROP and started to draw my monthly pension from it. In 2023 I returned to the UK and became UK tax-resident again. My question is this. I should like to pay into a UK personal pension. Does my drawing down on QROP trigger the drop in the Money Purchase Annual Allowance to £10,000? Or can I contribute up to £60,000? Adrian

Hi Stephen,
Where a member has made a transfer to a qualifying recognised overseas pension scheme (QROPS) they can still be liable to the member payment charges if that scheme loses or gives up QROPS status after the transfer was made.  
Please have a look at link below to see how the member payment charge works.  
PTM113210 - International: UK tax charges on non-UK schemes: the member payment charges and taxable property charges: the member payment charges: basic principles
For a more a indepth reply, you would need to contact our Self Assesment team using the link below or seek professional advice.
Self Assessment: general enquiries
Thank you.

Hi! I’m seeking guidance on the 25% tax free sum. I’ve been living in Italy since 1997 and had a QORPS pension initiated in 2018 in Malta, transferring my UK private pension there. I would now need to withdraw 25% of my pension to cover costs in Italy. My Italian tax advisor is unable to find any information on the supposedly tax free initial withdrawal of up to 25%. Is there an harmonised situation with Italy even after Brexit?

Hi 2.37018E+11,
Once you access your QROPs pension, your first payment will trigger the rules for money purchase annual allowance, which is £10000 in 2024 to 2025.
Reducing the money purchase annual allowance

Hi Paola,
Since 6 April 2017, you need to have been resident outside the UK for 10 consecutive tax years before you can access a QROPS pension (before April 2017, the requirement was five consecutive tax years). However, even if you satisfy the 10-year rule, you may still fall under UK tax rules if you withdraw from a QROPS within five years of switching from a UK-based pension. 
Thank you.

Hello. I moved to New Zealand from the UK 18months ago and am a NZ tax resident. I arranged for my UK pension to be transferred over to a NZ QROPS 5 months ago. The funds are now in NZ. I understand the 5 year tax rule means I will be liable for UK HMRC tax should I wish to withdraw money from the retirement fund. Is there a limit to the funds I may withdraw before I am tax liable? I would like to access the retirement fund from time to time to provide some income on top of my state pension.I see the number £100000 mentioned in some of the forum posts. Is this a tax threshold before becoming liable to paying tax to HMRC. Thanks

Hi Kevin,
Please have a look at the guidance at Transferring your pension and Overseas pensions: pension transfers.  
Further guidance can be found at: 
PTM112010 - International: qualifying recognised overseas pension schemes (QROPS): introduction.
Thank you.

Hi, I moved to Spain and became a tax resident there in 2005. I am dual UK-Spain national. I had frozen pensions in the UK from two periods worked there between 1991 and 2005. In 2019, I transferred my pension to a Malta-based QROPS. Now, I am contemplating returning to the UK, on a part-time basis, up to 6 months a year, to carry out consultancy work. Way more than 10 tax years have gone by since I left the UK, but the pension hasn't been out of the UK and in the QROPS for a full five tax years. Can you let me know where I stand with this? I have been drawing income from the QROPS since 2020, on temporary annuities basis. Thank you.

Hi I moved to NZ in 2007 and moved my pension over in March 2020. I have not worked in the UK since and do not intend to in the future. According to the 10 year/5 year rule can I access the whole of my pension from April 2025? Thanks

Hi ,
 

Since 6 April 2017, you need to have been resident outside the UK for 10 consecutive tax years before you can access a QROPS pension (before April 2017, the requirement was five consecutive tax years). z However, even if you satisfy the 10-year rule, you may still fall under UK tax rules if you withdraw from a QROPS within five years of switching from a UK-based pension .  Thank you .

Hi, My question is directed to previous responses given by 'HMRC Admin 20 Response', and 'HMRC Admin 17 Response', stating that "from April 2017 you need to have been resident outside the UK for 10 consecutive tax years before you can access a QROPS pension." Can you please indicate where in the Pensions Tax Manual (or other relevant legislation/guidance) this is stated, as I have been unable to locate it? Thank you.

Hi John NZ,
Since 6 April 2017, you need to have been resident outside the UK for 10 consecutive tax years before you can access a QROPS pension (before April 2017, the requirement was five consecutive tax years).
However, even if you satisfy the 10-year rule, you may still fall under UK tax rules if you withdraw from a QROPS within five years of switching from a UK-based pension. 
Thank you.
 

Hi Anthony,
Please have a look at the guidance at PTM112010 - International: qualifying recognised overseas pension schemes (QROPS): introduction onwards.  
It advises Certain tax charges known as the member payment charges can apply up to the later of: 10 full tax years following the tax year in which the member left the UK and
five years from the date the transfer was made to the QROPS.
Thank you.

 

In response to HMRC Admin 20 - I have read PTM112010 (and various other PTM links mentioned within that document). I understand that member payment charges can apply up to 10 full tax years following the tax year in which the member left the UK. However, my understanding is that member payment charges do not prohibit access to a QROPS pension within that same time period. I am still unable to find where it states that "since 6 April 2017 you need to have been resident outside the UK for 10 consecutive tax years before you can access a QROPS pension". Can you please advise further?

I moved to Spain in 2017 and transferred my pension to a QROPS in Malta in Sept 2019. Now I’m thinking of moving back to the UK and deciding if I move my pension. I haven’t taken any of the pot as yet. Do I need to wait until 5 full tax years since the transfer before I physically move? Will I invite the 25% charge if I move me and not the pension before that date? Or is it just 5 full tax years before moving the pension, and I can move ahead of that without incurring the tax?

Hi Team I emigrated to Australis in 2007 at the age of 45 . Self employed all my life. Paid for sipp's each year. I have now transfered them to Australia..Via "IVCM" 9th July 2021. can I access these pensions without a default payment ...ie without UK Tax implications.

Hi
Please refer to Overseas pensions: pension transfers

Hi,
You can see guidance on the transfer of pension overseas here: 
Overseas pensions: pension transfers
Thank you.

Good morning , I am 45 and looking to move back to India over the next 2 years. Would i be eligible to move my pension overseas to an Indian provider who is qrops approved ? Can I do so right away in preparation for a move out of the UK in a year or two? I am on an ILR, would that make any difference? Thank you for taking the time to answer this . Best regards SK

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