QROPS is the well used acronym standing for Qualifying Recognised Overseas Pensions Scheme, and is the benchmark required by HMRC before permitting any HMRC approved scheme to be transferred overseas.
In brief the requirements for QROPS are that:
- It must be established outside the United Kingdom
- There is in the country in which it is established a body that regulates pensions and the scheme is so regulated.
- And for Tax recognition that a scheme has to meet to be an Overseas Pension Scheme that is enabled to accept transfers from HMRC approved schemes in the UK the Scheme must:
- Be recognised for tax purposes under the tax legislation of the country or territory in which it is established and
- It must be open to persons resident in the country or territory in which it is established and
- All or most of the benefits paid by the scheme to the Members who are not in serious ill health are subject to taxation
- At least 70% of the Member’s UK tax relieved scheme funds should be designated to provide an income for life for the Member not before the Member has reached “Normal Retirement Age”.
Read the full summary here: HMRC Gets Rough on QROPS Abuse