RPSM14101030 - Technical Pages: Transfers: Recognised transfers from registered pension schemes: Overseas pension scheme
This guidance only reflects the tax rules that applied up to and including 5th April 2012. See RPSM13104000 for guidance on the tax rules applying to all QROPS after 5 April 2012.
Overseas pension scheme
For a scheme to be classed as an overseas pension scheme under section 150(7), it:
- cannot be a registered pension scheme,
- must be established outside the United Kingdom. Normally, a scheme will be treated as established in the country where its registered office and main administration is, or, if there is no registered office, where its main administration is. The scheme’s location of main administration is where the scheme’s decisions are made. In the case of a trust-based scheme that would normally be determined by reference to where the scheme trustees are resident.
It must also meet the following requirements that are prescribed under The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006 [SI2006/206]:
- it must be regulated as a pension scheme in the country in which it is established, or, if there is no body by which it could be regulated, then certain conditions must be met (see RPSM14101035). It can be an occupational pension scheme (including a public sector scheme), a personal pension scheme or a social security scheme. A scheme is regulated in a country or territory if it is subject there to supervision by the national authorities that are responsible for ensuring that pension schemes are administered soundly in order to protect members’ interests.
- it must be 'recognised for tax purposes' by the country or territory in which it is established. This means that it must meet primary conditions 1 and 2 as well as conditions A or B which are set out in RPSM14101036.
Exceptionally, if it is a scheme established by an international organisation it must meet the conditions set out in RPSM14101037 instead of meeting the previous two conditions.