RPSM14101020 - Technical Pages: Transfers: Recognised transfers from registered pension schemes: Transfer to a non-registered overseas pension scheme which is a "qualifying recognised overseas pension scheme"

Transfer to a non-registered overseas pension scheme which is a qualifying recognised overseas pension scheme

A transfer of a member's benefit rights in a registered pension scheme to a pension scheme which is established outside the UK and not registered in the UK may also be a recognised transfer, if the receiving scheme is a qualifying recognised overseas pension scheme.

Qualifying recognised overseas pension scheme

A qualifying recognised overseas pension scheme is one that

• meets the conditions of being an overseas pension scheme under section 150(7) Finance Act 2004, (see RPSM14101030) and
• meets the conditions of being a recognised overseas pension scheme under section 150(8) Finance Act 2004, (see RPSM14101040) and
• meets certain other conditions under section 169 Finance Act 2004 (see RPSM14101050).

Qualifying recognised overseas pension scheme status does not confer on an overseas scheme the tax exemptions to which a registered pension scheme is entitled. In particular, it does not affect the scheme’s liability to UK tax on any income it has from UK property. And if a qualifying recognised overseas pension scheme invests in an unauthorised unit trust any gains accruing to that unit trust remain chargeable if the overseas scheme is exempt from capital gains tax or corporation tax on such gains only by reason of its residence.