Illustrative tool
Since October 2024 the 25% Overseas Transfer Charge reaches most QROPS transfers. See the factual differences for your situation before anyone shows you a scheme.
Factual comparison only, not financial advice.
The QROPS vs SIPP Comparator is a free tool that sets out the factual differences between the two routes for a UK pension held abroad: the 25% Overseas Transfer Charge and its exclusion conditions after the October 2024 rule change, the £1,073,100 Overseas Transfer Allowance, regulation, reporting, and currency. It shows the charge a transfer could attract in your situation so the conversation with a regulated specialist starts from the number that matters. It compares routes; it does not choose one for you.
This comparison is factual and illustrative only and is not financial advice. QROPS and SIPP treatment depends on your residence, the scheme, the current HMRC ROPS list, the Overseas Transfer Charge exclusion conditions, and the Overseas Transfer Allowance, all of which can change. Transfers of defined benefit pensions worth more than £30,000 require regulated advice by law. Speak with a regulated specialist before making any decisions.
Which describes your situation?
The figure that matters first
£75,000
is the 25% Overseas Transfer Charge a £300,000 QROPS transfer could attract in your situation, because since 30 October 2024 the charge applies unless an exclusion condition is met, and the main one is living in the same country as the QROPS. A SIPP transfer attracts no OTC. Whether an exclusion applies to you, and whether a QROPS still makes sense despite it, is precisely what the specialist establishes first.
| Factor | SIPP | QROPS |
|---|---|---|
| Overseas Transfer Charge risk | None | 25% unless an exclusion condition is met |
| Overseas Transfer Allowance cap | Does not apply | £1,073,100 on OTC-free transfers |
| Stays in the UK tax wrapper | Yes, UK-regulated scheme | No, host-country rules apply after transfer |
| HMRC reporting after transfer | Standard UK reporting | HMRC retains a reporting interest for 10 years |
| Currency of investments | Multi-currency possible within UK schemes | Host-scheme dependent, can match local currency |
Illustrative only, not financial advice.
Weighing a pension transfer? Tell us your situation.
Exclusions, allowances, scheme quality, and what happens if you move again: a specialist works through all of it before anything is signed.
Questions
Common questions about QROPS and SIPPs
What is the Overseas Transfer Charge and when does it apply?
The Overseas Transfer Charge (OTC) is a 25% HMRC tax charge on QROPS transfers that do not meet an exclusion condition. Following the Autumn Budget 2024, the EEA and Gibraltar exclusion was removed with effect from 30 October 2024. The remaining exclusions include being resident in the same country as the QROPS at the time of transfer, and certain occupational, public service, and international organisation schemes. A retrospective charge can also apply if you move country within five years of a transfer that was initially OTC-free.
What is the Overseas Transfer Allowance?
The Overseas Transfer Allowance (OTA) was introduced on 6 April 2024 when the Lifetime Allowance was abolished. It caps OTC-free QROPS transfers at £1,073,100 in total: any excess attracts the 25% charge even where a residency exclusion applies, and the allowance is reduced by any Lifetime Allowance used before April 2024. SIPP transfers are not subject to the OTA.
When is a SIPP the practical route for an expat?
A SIPP keeps the pension inside the UK tax wrapper under UK regulation, attracts no Overseas Transfer Charge, and can usually be drawn from abroad. Since the October 2024 rule change, transferring to a QROPS in a country you do not live in generally attracts the 25% charge, which has made the SIPP the practical route for many expats who are not resident in a QROPS jurisdiction. Which route fits YOUR situation depends on residence, scheme, currency, and estate considerations, and that assessment belongs with a regulated specialist.
Do defined benefit transfers have extra requirements?
Yes. Where safeguarded benefits in a single scheme exceed £30,000, UK law requires regulated advice before a transfer can proceed, whether the destination is a QROPS or a SIPP (Section 48, Pension Schemes Act 2015). A completed defined benefit transfer cannot be reversed, and your scheme provides the actual transfer value. Our CETV estimator gives an indicative starting figure.
Open the CETV estimatorThe regulated specialists we introduce assess residence, scheme, and charge position together, so the route chosen still makes sense if your life moves again.