QROPS (Qualifying Recognised Overseas Pension Scheme)

An overseas pension scheme that meets HM Revenue & Customs (HMRC) requirements to receive transfers from UK-registered pension schemes without the transfer being treated as an unauthorised payment (which would attract a 40% UK tax charge). Created in 2006 and a major UK-expat planning tool, the QROPS list is publicly maintained by HMRC. The 2017 reform introduced the Overseas Transfer Charge (OTC) — a 25% UK tax on transfers to a QROPS unless the transfer is to a scheme in the same country as the member's residence, to an EEA-based scheme (with the member also EEA-resident), or to an employer-sponsored occupational scheme. From 30 October 2024 the EEA exception was abolished, so most non-same-country transfers attract the OTC. Popular jurisdictions historically: Malta, Gibraltar, Isle of Man.