RPSM14101040 - Technical Pages: Transfers: Recognised transfers from registered pension schemes: Recognised 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.
Under section 150(8) a recognised overseas pension scheme is an overseas pension scheme that meets the following requirements prescribed under The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006 (SI 2006/206). It must:
- be established in a Member State of the European Union, Norway, Liechtenstein or Iceland, or
- be established in a country or territory with which the UK has a Double Taxation Agreement that contains exchange of information and non-discrimination provisions - see the list in RPSM14101046 (there is more information on the provisions of particular Double Taxation Agreements in the Double Taxation Relief Manual), or
- satisfy the requirement that, at the time of the recognised transfer, the rules of the scheme provide that:
- at least 70% of the funds transferred will be designated by the scheme manager for the purpose of providing the member with an income for life,
- the pension benefits (and any associated lump sum) payable to the member under the scheme, to the extent that they relate to the transfer, are payable no earlier than they would be if pension rule 1 in section 165 applied, and
- membership of the scheme is open to persons resident in the country or territory in which it is established.
Pension rule 1 in section 165 provides that no payment of pension may be made before the day on which the member reaches normal minimum pension age, unless the ill-health condition was met immediately before the member became entitled to a pension under the scheme. Guidance on the normal minimum pension age is provided at RPSM08100010 to RPSM08100030, and there is guidance on the ill-health condition in RPSM08100070.