31 October 2024
Within the budget documentation lies some important changes for pensions schemes administrators and the transfer of pensions outside of the UK.
From 30 October 2024 (budget day) the exclusion for Qualifying Overseas Pensions Schemes (QROPS) established in the European Economic Area (EEA) from the Overseas Transfer Charge (OTC) has been removed. Meaning such transfers will now incur the 25% tax charge.
Additionally, from 6 April 2025, Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) established in the EEA will need to follow new rules in line with they rest of the world.
- OPS established in the EEA will be required to be regulated by a regulator of pension schemes in that country
- ROPS established in the EEA must be established in a country or territory with which the UK has a double taxation agreement providing for the exchange of information, or a Tax Information Exchange Agreement
From 6 April 2026, registered pension schemes will also be required to ensure that scheme administrators are UK residents.
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