What is QROPS or ROPS?

To make a compliant UK pension transfer – you must transfer your UK Pension to a HMRC recognised Overseas Pensions Scheme (ROPS) ROPS.

In 2015, this list replaced the HMRC’s Qualified Recognised Overseas Pension Scheme (QROPS) list which had been in place since 2006.

Any transfer that is made to a fund that does not appear on the HMRC’s Qualified Recognised Overseas Pension Scheme (QROPS) list may incur a potential tax penalty of up to 55% on the total transfer value.

HMRC doesn’t guarantee transfers to ROPS list funds will be free of UK tax. As such, it is vital, that you seek specialist advice on QROPS/ROPS transfers to ensure penalty taxes are not incurred.

More detail about HMRC’s QROPS list and ROPS list

Major Changes to UK Pension Transfers to Australia from June 2015

In April 2015, the UK Government (HMRC) halted all transfers to Australian QROPS Retail funds

On 25 June 2015, HMRC (Her Majesty’s Revenue & Customs) announced to Australian Treasury that Australian super funds would not be able to comply with the new QROPS requirements.

Consequently on 1 July 2015, HMRC delisted 1653 Australian Super Funds from their QROPS list on 1 July 15.

As a result, these Australian Super Funds could no longer receive UK pension transfers.

How did this come about?
The events on 2015 came about as the UK Government wanted to restrict UK Pension holders in Australia in accessing their UK pension before age 55.

Solutions for those Aged Over 55.
As a consequence of the UK Governments actions, hundreds of Australian Self-Managed Super Funds (SMSF) have been granted UK QROPS status by restricting membership to members over 55 years of age.

There is one Australian Retail QROPS.