The Recognised Overseas Pension Schemes (ROPS) is a list of pension schemes that have notified HMRC that they meet the conditions to be a ROPS and have asked to be publicly listed. The list is usually published twice monthly to update new and removed schemes. In the most recent update on 15 July 2022, 10 ROPS were added to the list, 15 were amended and 35 were removed.

The requirements to be a ROPS changed on 6 April 2017. Taxpayers need to check that the scheme they are transferring to on or after that date meets the new requirements.

It is the taxpayer’s responsibility to find out if they have to pay tax on any transfer of pension savings. HMRC will usually pursue any UK tax charges (and interest for late payment) arising from transfers to overseas entities that do not meet the ROPS requirements, even if they appear on the list. HMRC also charges penalties in some cases.

Tax relief is given on pensions to encourage saving to provide benefits in later life. Accessing benefits (directly or indirectly) before the age of 55 will result in a liability to UK tax charges in all but the most exceptional circumstances.

Source: New feed