HMRC clarifies its position on QROPS transfers

HMRC has confirmed that where an original transfer to a QROPS benefited from relief from the Overseas Transfer Charge under the EEA exemption, any subsequent move “will continue to be sheltered from the overseas transfer charge”.

In practice, this means that where a pension was transferred to a QROPS before 30 April 2025 for a member resident in the EU or EEA, no Overseas Transfer Charge applied at the time (provided the individual remains resident in the EU/EEA for five years following the date of the move).

In these circumstances, the arrangement can now be transferred to another QROPS without triggering the Overseas Transfer Charge, even if the original move took place within the last five years. This clarification presents a valuable opportunity to improve outcomes for clients with existing QROPS arrangements.

James King, Managing Director of Praxis’ pensions and employer solutions in Malta, welcomed the clarification. “This represents a valuable opportunity to improve outcomes for clients with existing QROPS arrangements. Our contract-based structure is widely recognised across Europe and aligns with modern regulatory expectations. Internationally mobile families and their advisers are increasingly recognising the significant distinction.”

HMRC has confirmed that clients will not incur the 25% Overseas Transfer Charge, regardless of when the original UK transfer occurred.

Until 30th June, we are waiving our initial and annual fee for any transfers to Praxis. Speak with our pensions & employer solutions team to explore whether a transfer could improve outcomes for your QROPS clients.

Please note that this article is intended to provide a general overview of the matters to which it relates. It is not intended as professional advice and should not be relied upon as such. Any engagement in respect of our professional services is subject to our standard terms and conditions of business and the provision of all necessary due diligence. © Praxis 2026