Should I Keep My QROPS? Evaluating Expat Pension Options

📚 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.

Last updated: October 2025 — Reflects the latest HMRC guidance on QROPS transfers and overseas pensions.

If you transferred your UK pension overseas in the past decade, chances are it went into a QROPS (Qualifying Recognised Overseas Pension Scheme).

At the time, that move may have been smart – offering flexibility, tax advantages, and freedom from the old Lifetime Allowance (LTA).

But as pension rules and expat lifestyles have evolved, many QROPS holders are now asking a new question:

❓ Should I keep my QROPS, or transfer back to a UK-regulated SIPP?

This article helps you weigh that decision, explaining the key differences, when each option fits best, and what’s changed since you first transferred.

🗝️ Key Takeaways

QROPS were originally designed for long-term expats, but many of their historical tax benefits have disappeared.
UK SIPPs (Self-Invested Personal Pensions) now offer similar flexibility and are often cheaper and better regulated.
A return to the UK or change in tax residency can make your QROPS less suitable.
The Overseas Transfer Charge (OTC) and HMRC reporting obligations can complicate cross-border planning.
A QROPS can still make sense for permanent non-UK residents in countries with favourable local tax treatment.
For many, repatriating into a UK SIPP offers lower fees, better protection, and easier compliance.

⚖️ QROPS vs UK SIPP: The Big Picture

Both QROPS and SIPPs let you manage your retirement savings flexibly, but they operate under different regimes.

Here’s how they compare:

Feature	QROPS	UK SIPP
Regulation	Overseas (e.g. Malta, Gibraltar, Guernsey)	UK FCA-regulated
Currency Options	Multi-currency	Multi-currency
Consumer Protection	Limited local regulation	FSCS + FCA oversight
Tax Exposure	May face Overseas Transfer Charge (25%)	No OTC
Access Age	55+ (57 from 2028)	55+ (57 from 2028)
Reporting	Trustees report to HMRC for 10 years	UK rules apply
Typical Annual Cost	£2,000–£3,000	£600–£1,200
Best For	Long-term non-UK residents	UK or returning expats

When QROPS Still Make Sense

While less common than before, QROPS still serve a valuable purpose in specific scenarios:

You live permanently outside the UK and don’t plan to return.
Your host country taxes UK pensions heavily, but exempts overseas schemes.
You have a large fund (£1,000,000+).
You value distance from UK pension legislation or political risk.

In these cases, a QROPS can still deliver flexibility and control — provided it’s reviewed regularly and compliant with HMRC’s rules.

👉 For deeper context, read my comprehensive QROPS guide for expats.

When a UK SIPP May Be Better

In 2025, most new QROPS enquiries that I receive are from clients wondering if they should move their existing QROPS back to a UK-regulated SIPP — and often, the answer is yes.

A SIPP is usually more appropriate if:

You’re returning to live in the UK, or likely to in the next few years.
Your QROPS fees are excessive.
You want FCA protection and FSCS coverage.
You want to simplify your pension arrangements.

In short: A QROPS may have been right once, but an International SIPP could now do the same job more efficiently and safely.

Case Study 1: Returning to the UK

David, 63, transferred his UK pension to a Maltese QROPS in 2015 when he moved to Cyprus. It offered flexibility and euro income.

In 2024, David and his wife decided to return to the UK.

Result:

His QROPS income became taxable under UK rules again.
His annual trustee and reporting fees (£2,200/year) continued.
He chose to repatriate his QROPS into a UK SIPP, cutting costs by half and regaining full FCA protection.

Lesson: A QROPS may not add value once you’re UK resident again; it can simply add layers of cost and complexity.

Case Study 2: Moving Within the EU

Sarah, 58, has lived in Spain for 10 years. Her pension was transferred into a Gibraltar QROPS in 2014 to avoid the Lifetime Allowance.

Since 2023:

The Lifetime Allowance has been abolished.
The EEA exemption for the Overseas Transfer Charge was removed in October 2024.
It has been announced that UK pensions will be subject to Inheritance Tax from April 2027.

Result:

Because Sarah is no longer a UK Long Term Resident, her QROPS is not expected to be subject to Inheritance Tax from April 2027.

If she were to transfer it back to an International SIPP, it would be, even if she stayed in Spain.

As a result, Sarah decided to retain her QROPS.

🔗 Are UK Pensions Now Liable for Inheritance Tax? The New Pension IHT Rules Unpacked 🔗 What Are UK Situs Assets? What Every Long-Term Expat Needs to Know

Making the Decision: Key Factors to Weigh

Before deciding whether to keep your QROPS or move to a SIPP, consider:

Your residency and tax obligations (current and future).
Costs and fees: is your QROPS still cost-effective?
Regulatory comfort: do you prefer UK FCA protection?
Currency requirements: do you still need euro or dollar income?

Estate planning: what are the inheritance implications in your host country?

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.

💡 Key Principle to Remember

QROPS were designed to give freedom. But with tighter HMRC oversight, the freedom now lies in knowing when to stay and when to move back.

❓ Frequently Asked Questions (QROPS vs SIPP, 2025)

Can I transfer my QROPS back to the UK?

Yes, usually into a UK-regulated SIPP or International SIPP.

Is there tax when transferring from QROPS to SIPP?

Normally no, provided the transfer is between recognised schemes.

What happens if I return to the UK while holding a QROPS?

Your income becomes taxable in the UK.

Are investment options different between a QROPS and a UK SIPP?

In most cases, no. Both structures allow access to a wide range of global investments. However, SIPPs generally offer lower-cost platforms and a broader choice of regulated investment options, while some QROPS trustees impose additional restrictions or fees.

Is a QROPS better for large pensions?

Sometimes. Especially for permanent non-UK residents with funds over £1,000,000.

Which is safer — QROPS or SIPP?

SIPPs are safer from a consumer protection standpoint, being FCA-regulated and FSCS-backed.

How do fees compare?

QROPS typically cost 1.5–2.5% annually; SIPPs average 0.6–1.2%.

Does currency flexibility matter?

Yes. If you spend in euros or dollars, a QROPS may still offer practical advantages.

Can I hold both a QROPS and a SIPP?

Yes, some expats do. Especially if they’ve built pension savings across different jurisdictions.

How often should I review my QROPS or SIPP?

At least every 12–18 months, or whenever your residence or circumstances change.

📚 Further Reading

HMRC QROPS List (Official Government Site)

🧠 Final Thoughts

A QROPS can still serve a purpose, but for many expats, the game has changed.

If you’re permanently overseas, it might still be the right fit.

However, if you’re considering a return to the UK or simply want a more straightforward structure, an International SIPP often wins out in terms of cost, control, and protection.

⚖️ Your pension shouldn’t be stuck in the past; it should move with you.

Talk to an Expert

If you transferred your UK pension overseas years ago, you may now be questioning whether your QROPS is still the right home for your retirement savings. With rule changes, lower-cost UK options, and evolving expat lifestyles, many QROPS holders are now better served by moving back to a UK-regulated SIPP — while others benefit from keeping their QROPS, depending on residency and tax position.

I’m Ross Naylor, a UK-qualified Chartered Financial Planner & Pension Transfer Specialist with nearly 30 years’ experience helping British expats evaluate QROPS vs SIPP decisions, reduce unnecessary fees, meet HMRC requirements, and align pensions with long-term residency and tax goals.

Whether you’re permanently overseas, planning a future UK return, or simply unsure whether your QROPS still fits your life today, I can help you understand your options clearly — and build a pension structure that moves with you rather than holds you back.

Book a QROPS vs SIPP review call

Evaluating Expat Pension Options: Should I Keep My QROPS or Move to a UK SIPP?