Are QROPS Still Suitable in 2026?
📚 QROPS Guidance Series (2025/2026)
This series brings together the most important guidance for British expats and returning UK residents with overseas pensions. From understanding the latest HMRC rule changes to deciding whether to keep your QROPS or move to a UK SIPP, these articles provide clear, practical insights to help you make confident financial decisions.
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- QROPS Guide for Expats – Understand Your Options (2025/2026 Edition)
- Are QROPS Still Suitable in 2026?
- QROPS Advice: How New HMRC Rules Could Impact Your Overseas Pension Transfer
- Evaluating Expat Pension Options – Should I Keep My QROPS or Move to a UK SIPP?
- QROPS Explained: How the 5-Year Rule Affects Your Overseas Pension
- I’m Unhappy With My QROPS – What Should I Do?
- How to Choose the Right QROPS Adviser
- QROPS Poland: Should British Expats Review or Transfer Their UK Pension?
Evaluating the ongoing relevance of QROPS for British expats
Last Updated: October 2025
For almost two decades, Qualifying Recognised Overseas Pension Schemes (QROPS) have been a go-to option for British expats looking to transfer UK pensions abroad.
But after several major rule changes, many are now asking:
❓ Are QROPS still worth it?
This timely update examines the QROPS 2025 rules, explores whether they still make sense, and provides an expert opinion on when a transfer, or review, might be appropriate.
📊 Visual Summary: QROPS at a Glance (2025/2026)
| Feature | Detail |
| Introduced | 2006 |
| Purpose | Allow expats to move UK pensions overseas |
| Typical Fund Size | £250,000+ |
| Main Rules | 5-Year Rule, 10-Year HMRC reporting, 25% Overseas Transfer Charge |
| Suitable For | Long-term non-UK residents with large pension funds |
| Common Alternatives | International SIPPs (UK-regulated, flexible, cost-effective) |
Key Takeaways
- The original appeal of QROPS has faded; UK pensions now offer similar flexibility.
- Pension Freedoms (2015) and the abolition of the Lifetime Allowance (2023) removed major incentives to transfer.
- As of October 2024, most EEA and Gibraltar transfers face the 25% Overseas Transfer Charge (OTC).
- International SIPPs often provide similar benefits, with lower costs and UK regulatory protection.
- QROPS can still work for permanent non-UK residents with large pension funds and favourable local tax regimes.
- Regular QROPS reviews are essential, especially if your adviser has changed or your residency has shifted.
Why QROPS Have Lost Their Shine
When QROPS were first introduced in 2006, they offered British expats flexibility that UK pensions didn’t.
But since then, several rule changes have levelled the playing field.
Key Turning Points
- 2015 – Pension Freedoms: UK schemes gained full drawdown flexibility.
- 2017 – Overseas Transfer Charge (OTC): A 25% tax introduced for many overseas transfers.
- 2023 – Lifetime Allowance (LTA) abolished: Removed one of QROPS’ biggest tax advantages.
- October 2024 – EEA exemption withdrawn: Transfers to Malta and Gibraltar now often trigger the 25% OTC.
In short: What once made QROPS attractive has largely disappeared, but for some expats, they still have a niche role.
QROPS 2025 Rules: What Still Applies
Despite the reduced appeal, QROPS remain legal and HMRC-recognised, but the rules are far tighter than before.
| Rule | Description | Why It Matters |
| 5-Year Rule | If you return to the UK within 5 years, UK tax applies again. | Prevents short-term tax avoidance. |
| 10-Year Rule | Trustees must report to HMRC for 10 years after transfer. | Ensures transparency. |
| Overseas Transfer Charge (OTC) | 25% charge unless both you and your QROPS are in the same country. | Significant cost if misapplied. |
| Pension Age Rule | Benefits cannot be accessed before 55 (57 from 2028). | Aligns with UK rules. |
| HMRC QROPS List | Only approved schemes qualify. | Protects against unauthorised payment penalties. |
📦 Call-Out: Free QROPS Review Checklist
📥 Download Your Free QROPS Review Checklist (PDF) Not sure if your QROPS is still working for you? This checklist helps you:- Identify outdated schemes
- Compare fees and performance
- Assess tax exposure
- Explore International SIPP alternatives
Are QROPS Still Worth It in 2025?
The short answer: sometimes, but not often. A QROPS can still be beneficial if you:- Live permanently outside the UK
- Have a large pension (£500,000+)
- Face unfavourable tax on UK pensions in your new country
- Want income in your local currency
A Practical Guide for British Expats Reviewing Their Overseas Pension
Download my FREE QROPS Checklist
If you set up a QROPS several years ago, it may no longer be suitable for your circumstances. The rules have changed, costs may have risen, and your residency or tax position might be different. This checklist helps you quickly assess whether your QROPS still fits your goals or whether it’s time to seek professional advice.
💰 QROPS vs International SIPP (2025 Comparison)
| Feature | QROPS | International SIPP |
| Regulation | Overseas (e.g. Malta, Gibraltar) | UK FCA |
| Currency Options | Multi-currency | Multi-currency |
| Setup Cost | Higher | Lower |
| Ongoing Fees | High (trustee + admin) | Moderate |
| Consumer Protection | Limited | Strong (FCA + FSCS) |
| OTC Exposure | Yes | None |
| Best For | Permanent non-UK residents | UK-connected expats |
💡 Ross’s Insight: “Since 2023, almost all new enquiries I’ve received about QROPS have been from people questioning older arrangements rather than starting new ones. That tells you how much the landscape has shifted.”
👉 If you’re evaluating whether to keep or switch, read Evaluating Expat Pension Options – Should I Keep My QROPS?.
Real-World Example
Mark, 58, transferred his UK pension to a Gibraltar QROPS in 2014 after moving to Spain.
At the time, this helped him avoid the old LTA charge and receive income in euros.
Fast forward to 2025:
- The LTA has been abolished
- Trustee fees exceed £2,000 per year
- The legacy QROPS provider has outdated procedures and responds slowly
- His adviser relocated
- The OTC now applies to future transfers
Following a review, Mark repatriated his funds into a UK International SIPP, saving over 40% annually in fees, restoring UK regulatory protection, and gaining access to modern, responsive client service.
Lesson: What worked 10 years ago may no longer be suitable. Tax and pension rules evolve — your retirement plan should, too.💬 Frequently Asked Questions (QROPS 2025)
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Can I still transfer my UK pension into a QROPS?
Yes, provided it’s on the HMRC list.
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Will I pay the 25% Overseas Transfer Charge?
In most cases, yes. Unless both you and your QROPS are in the same jurisdiction.
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Can I transfer my QROPS back to the UK?
Yes, often into a UK or International SIPP. Many expats do this to simplify costs and reporting.
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Are QROPS still better than SIPPs?
Only in specific instances. For most, SIPPs now offer greater flexibility and lower cost.
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What if I move country after setting up a QROPS?
You may trigger the 25% OTC or create double taxation. Always review before relocating.
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What’s the minimum pension size for a QROPS to make sense?
Typically above £500,000. Below that, costs outweigh benefits.
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Are QROPS protected by the UK’s FSCS?
No. Overseas regulation applies.
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Are QROPS useful for inheritance tax planning?
Sometimes (particularly with the new UK pension IHT rules set to come in in April 2027).
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Do QROPS trustees report to HMRC?
Yes, for 10 years after the transfer.
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How often should I review my QROPS?
Every 12–18 months, or whenever you move countries or advisers.
🧭 Next Steps
Option 1: Book a Complimentary QROPS Review Call
Get a personalised assessment of your pension options and next steps.
Option 2: Download the Free QROPS Review Checklist (PDF)
A guide to help you evaluate fees, rules, and alternatives.
Option 3: Read the Complete QROPS Guide for Expats (2025 Edition)
🧠 Final Thoughts
The pension world has evolved, and so should your retirement strategy.
QROPS can still serve a purpose, but only for a small group of long-term, non-UK residents with complex pension and tax needs.
For everyone else, modern International SIPPs are now the more practical and transparent choice.
⚖️ The right pension isn’t the one that worked years ago, it’s the one that fits your life today.
Talk to an Expert
QROPS were once the “default recommendation” for British expats — but in 2024, many older schemes are burdened by high fees, commission-driven structures and limited investment choice. For a growing number of expats, a modern UK SIPP now offers better value, clearer regulation, and far stronger FCA consumer protection.
I’m Ross Naylor, a UK-qualified Chartered Financial Planner & Pension Transfer Specialist. For nearly 30 years, I’ve helped British expats assess whether their existing QROPS still makes sense, unwind unsuitable offshore wrappers, and compare their options with flexible, lower-cost SIPP arrangements.
If your QROPS hasn’t performed as expected, fees look excessive, your adviser disappeared years ago, or you simply want to know whether the structure still fits your life abroad, I’ll provide a clear, impartial review and a practical plan for the years ahead.
Book a QROPS review call