QROPS Overseas Transfer Charge Calculator 2026
Calculate the 25% overseas transfer charge on QROPS pension transfers. Understand when the charge applies, qualifying exemptions, and how much HMRC will deduct from your pension transfer.
QROPS Transfer Charge Calculator
A 25% Overseas Transfer Charge (OTC) applies to transfers to Qualifying Recognised Overseas Pension Schemes (QROPS) unless an exemption applies. The charge has applied since 9 March 2017.
Frequently Asked Questions
What is the QROPS overseas transfer charge?
The 25% Overseas Transfer Charge (OTC) was introduced on 9 March 2017. It applies when a UK pension is transferred to a Qualifying Recognised Overseas Pension Scheme (QROPS) and no exemption applies.
When does the 25% charge NOT apply?
The charge is exempt when: (1) you transfer to an EEA state/Gibraltar-based QROPS and you are resident in the same EEA state, (2) you transfer to an employer-sponsored QROPS and work in the same country, or (3) you are already resident in the country where the QROPS is registered.
What is a QROPS?
A QROPS (Qualifying Recognised Overseas Pension Scheme) is an overseas pension scheme that meets HMRC's requirements. Popular QROPS destinations include Malta, Gibraltar, and the Isle of Man. HMRC publishes a list of recognised QROPS.
What happens if I move countries after an exempt transfer?
If you received an EEA exemption but then move outside the EEA within 5 years of the transfer, the 25% charge becomes due. This is called a 'subsequent charge' and HMRC can recover it from the pension fund.
Can the charge be paid from outside the pension?
Yes — the 25% charge can be paid from personal funds rather than being deducted from the pension. This preserves more pension savings but requires careful cash flow planning.
What is the Lifetime Allowance interaction with QROPS?
The Lifetime Allowance was abolished from 6 April 2024. However, the Overseas Transfer Allowance (OTA) of £1,073,100 still applies to QROPS transfers — amounts above this face an additional 25% charge.
Which countries have the most QROPS?
Malta is the most popular QROPS destination for UK expats due to EU recognition. Gibraltar, Isle of Man, and New Zealand also have significant QROPS registrations. Australia removed its QROPS recognition in 2015.
Should I use a QROPS?
QROPS can be beneficial for expats who do not plan to return to the UK, want multi-currency flexibility, or face lower tax in their new country. However, always take regulated financial advice — the wrong QROPS choice can result in penalties, loss of pension tax relief, and poor investment outcomes.