A Qualifying Recognized Overseas Pension Scheme (QROPS) is an HMRC-approved international pension agreement that enables individuals to transfer their UK pension benefits to a scheme outside the United Kingdom. Designed for expatriates and returning NRIs, QROPS ensures a compliant, tax-efficient transfer of retirement savings while adhering to HMRC regulations.

• HMRC-Registered – Only overseas pension schemes meeting strict HMRC criteria qualify as QROPS.
• Flexible Transfer – Enables smooth relocation of UK pension funds without triggering unauthorized payment charges.
• Global Mobility – Ideal for professionals who have worked in the UK and are now retiring or resettling abroad, including India.

For Indian professionals who contributed to UK pension schemes during their employment, QROPS offers a structured pathway

• Repatriate retirement savings to India through HMRC recognized pension schemes.
• Tax Optimization – Avoid heavy UK withdrawal taxes (up to 55%) and benefit from India’s favorable tax treatment under the UK-India Double Taxation Avoidance Agreement (DTAA).
• Rupee-Denominated Pensions – Eliminate currency risk by receiving payouts in INR instead of fluctuating GBP amounts.
• Higher Growth Potential – Invest in India’s dynamic markets for potentially greater returns compared to UK pension funds.
• Simplified Management – Consolidate multiple UK pensions into a single, easy-to-manage Indian retirement plan.
• Inheritance Tax Advantage – Protect your family from UK’s 45% inheritance tax- QROPS ensures full wealth transfer to nominees.

The steps are as follows:

• Connect with TransferMyQROPS (TMQ) QROPS Expert Advisor
• Obtain Statement of Account, Transfer Payout Form & Life Time Allowance from the Fund House
• Submission of Fund House Docs, KYC, HMRC Forms & Customer Declaration to Indian Pension Co., post choice of QROPS Scheme
• QROPS Transfer application from Indian Pension Co. to UK Fund House
• Transfer of funds from UK Fund House to Indian Pension Co.
• Receipt of New Business Plan

Her Majesty’s Revenue& Customs (HMRC) is the United Kingdom’s official tax authority responsible for:

• Collecting taxes that fund vital public services, including healthcare, education, and infrastructure
• Enforcing tax compliance to ensure fairness and transparency across the UK financial system.
• Administering state benefits, including pensions and financial support for individuals and families.
• Tax Regulation – Overseas income tax, corporate tax, VAT and other levies
• Pension Oversight – Governs UK pension schemes, including QROPS transfers for expatriates

To initiate a Qualifying Recognized Overseas Pension Scheme (QROPS) transfer, applicants must meet the following criteria:

• Active UK pension Pot – You must hold an existing pension fund in a UK-registered scheme
• Residency Status – Open to
  • Indian Residents
  • Non-Resident Indians (NRIs)
  • Persons of Indian Origin (PIOs)
  • Overseas Citizen of India (OCI)
  • Foreign Nationals legally residing in India (subject to Indian Pension Co.s prevailing underwriting rules at the time of transfer)

Yes, you should have a pension fund accumulated in the United Kingdom. The pension pot is maintained by a Fund House in the U.K. If you are not aware of your fund house, please do get in touch with your employer as they will inform you about your fund house.

The TAT for fund transfer is controlled by the fund house. On average, it takes them 2 to 3 months to transfer the funds once they receive the complete set of documents. However, this may take more time if they raise further requirements. As per UK regulations they are bound to transfer the funds within 6 months from the date of receiving the complete application for Fund Transfer.

No, it is not mandatory to have any particular bank account. You may use any other bank account for annuity processing and pension payout

Once the application is received by the UK fund house, they would process it as per their TAT. You can get in touch with the fund house to enquire about the status of their application.

There could be 2 scenarios for currency conversion:

• Conversion is done by a banker of the UK fund house banker and the INR amount is transferred to the Indian Pension scheme.
• GBP amount is transferred to the Indian bank and the currency conversion is done by the Indian bank.

TransferMyQROPS will not be in a position to offer tax advice. It is always advisable to take independent opinion from a qualified tax consultant on tax-related queries.

Yes, any pension fund in the UK regulated/governed by HMRC has the option to transfer the fund to any QROPS. Your UK-based fund house is in the best position to advise whether the transfer would be a QROPS transfer or an overseas transfer.

There is no maximum limit on the transfer nor the investment amount with the Indian pension scheme.

You need to get in touch with our TMQ QROPS Expert Advisors and initiate the request for fund transfer by sending the documents.

CETV request is sent to fund house requesting the fund statement (this normally applies for initiating transfers from NHS. Once the fund statement is received, again request for a fund transfer needs to be sent to the fund house. So the basic difference between both processes is that in the first process fund house sends the fund statement; however, in the second, they send the fund (if all documents are furnished and in place).

The following can be considered as the basic rules and regulations for using the QROP scheme. This list also serves as the primary QROPS eligibility criteria:

• The applicant must be between 18 and 75 years of age
• No withdrawal of funds from UK pension funds has been made in the past 5 years
• Must have active UK-based pension fund(s).
• The applicant has either left the UK or is planning to do so in the coming 1 year (with valid proof)

If an NRI has already purchased an annuity plan in the UK and is receiving regular payouts from it, these funds are currently not eligible for transfer to India under QROPS.

In April 2006, the HMRC introduced QROPS for individuals with UK pensions to move their pensions with them when they leave the UK permanently.

UK citizens are free to apply for a QROPS, however, you must show that you have a clear intention to leave the UK within the next year.

1. When can I access my Funds?
   • Minimum Age: 55 years – This is when you can start withdrawing from your QROPS pension.
2. How much Can I take?
   • Tax-Free Lump Sum: Up to 30% of your total pension pot- completely tax-free!
   • Lifetime Pension: The remaining 70% must be used to provide you with a regular income for life.
3. Why This matters:
   • Early Access? No – You must wait until the age of 55 (aligned with UK pension rules)
   • Tax Efficency? Yes – 30% tax-free is major advantage
   • Long-Term Security? Absolutely – The rest ensures lifetime financial stability.

During the first 10 tax years, the QROPS trustee is required to let the HMRC know of any payments, withdrawals, or transfers made from the QROPS. After the first 10 years, the QROPS trustee is no longer required to let the HMRC know of any payments, withdrawals, or transfers made from the QROPS.

The QROPS trustee ensures that all remaining assets upon death of the policyholder are distributed to the Named Beneficiaries.

Understanding the different QROPS rules is essential for ensuring compliance when transferring a UK pension overseas. Here are the key regulations associated with QROPS pension transfers.

• Recognised and Regulated by HMRC: A QROPS must adhere to standards and regulations set by the UK HM Revenue and Customs (HMRC). This includes being recognised and regulated in the jurisdiction where it is established.
• 10-year QROPS Reporting Requirement: QROPS providers must report any payments made for at least ten years after the pension transfer to HMRC. This is to comply with UK tax regulations. During this time frame, your QROPS provider is required to report any unauthorised withdrawals to the relevant authorities. (An unauthorised withdrawal is defined as accessing funds or benefits from your pension scheme before age 55). Accessing your funds before age 55 can result in substantial financial repercussions. You could incur a tax charge of up to 40% of the withdrawn amount and an additional surcharge as high as 15%.
• QROPS Five-Year Rule: If you return to the UK within five tax years of a QROPS pension transfer, the pension may be subject to UK tax rules. This is a crucial consideration for those who might repatriate to the UK. Once you have completed five full tax years outside of the UK, QROPS offers the flexibility to withdraw up to 30% of your pension as a lump sum without incurring UK Income Tax. However, it’s essential to consider the tax laws of your current country of residence before transferring to a QROPS, as this withdrawal may be taxable there.

Transferring your pension to a non-recognised overseas pension scheme can have significant financial consequences. The transfer will typically be taxed at 40%. If identified as an unauthorised payment by HMRC, you could face a tax charge of up to 55% on the transferred amount.

Seeking professional financial advice is crucial when considering a QROPS pension transfer. A dedicated cross-border pension transfer financial adviser can help you with the following:

• Assess your current pension, situation, and plans for the future and determine whether it’s in your best interest to transfer to a QROPS.
• Compare the different QROPS pension schemes and their investment options.
• Help you understand the tax implications and potential risks associated with QROPS pension transfers.