The number of UK pension transfers into Qualifying Recognised Overseas Pension Schemes (QROPS) surged to 7,100 in the 2023–2024 financial year—more than double the previous year. The total value of these transfers also rose sharply to £1.14 billion, the highest figure recorded since 2016–2017.
QROPS enable individuals with UK pension rights to move their savings to an overseas scheme that meets HMRC’s conditions. These schemes are commonly used by British expats or those planning to retire abroad.
A Look at the Trends
QROPS transfer volumes peaked in 2014–2015 at 20,100 transfers worth £1.76 billion, but fell significantly after the Overseas Transfer Charge (OTC) was introduced in March 2017. This 25% charge on most transfers made overseas made such moves far less attractive unless the individual and scheme were both located within the same country or qualifying territory.
Between 2017 and 2022, transfers remained low, hovering around 3,000 to 5,000 annually. However, 2023–2024 marked a turning point, with the number of transfers more than doubling. The average transfer size was £160,000, suggesting a strong interest from high-value pension holders.
| Year | Number of Transfers | Total Value |
| 2006–2007 | 2,500 | £120 million |
| 2007–2008 | 5,700 | £350 million |
| 2008–2009 | 6,100 | £360 million |
| 2009–2010 | 6,700 | £460 million |
| 2010–2011 | 12,800 | £1.36 billion |
| 2011–2012 | 16,400 | £1.04 billion |
| 2012–2013 | 13,400 | £1.00 billion |
| 2013–2014 | 11,300 | £860 million |
| 2014–2015 | 20,100 | £1.76 billion |
| 2015–2016 | 13,700 | £1.5 billion |
| 2016–2017 | 9,700 | £1.22 billion |
| 2017–2018 | 4,700 | £740 million |
| 2018–2019 | 5,000 | £640 million |
| 2019–2020 | 4,400 | £550 million |
| 2020–2021 | 3,000 | £416 million |
| 2021–2022 | 3,900 | £517 million |
| 2022–2023 | 3,300 | £680 million |
| 2023–2024 | 7,100 | £1.14 billion |
Source: HMRC – Pensions Schemes Newsletter 161 — August 2024 (https://www.gov.uk/government/publications/pensions-schemes-newsletter-161-august-2024/newsletter-161-august-2024#qualifying-recognised-overseas-pension-schemes-transfer-data)
Policy and Regulatory Drivers on Transfers
– Abolition of the Lifetime Allowance (LTA) Charge: Announced in March 2023 and effective from April 2024, this removed the 55% or 25% tax previously applied to pension amounts above the lifetime cap. This change significantly improves the tax treatment of large pension pots and likely incentivised larger overseas transfers.
– Continuing Impact of the Overseas Transfer Charge (OTC): While still in place, exemptions remain for many EEA and Australia-based schemes—key destinations for QROPS transfers. This may explain continued activity despite the OTC dampening broader market flows since 2017.
– End of Transfers from Unfunded Public Sector Schemes: Since 2015, members of unfunded defined benefit schemes (e.g., NHS, armed forces, civil service) have been barred from transferring to QROPS. The resulting drop in eligible high-value transfers partly explains the decline after 2014–2015.
What’s Behind the Rebound?
In addition to policy changes, the 2023–2024 rebound may be linked to:
– Currency fluctuations, pushing UK expats to hedge by moving pensions offshore.
– Growing retiree populations abroad.
– Perceived long-term tax advantages and more flexible investment options overseas.
The upcoming 2024–2025 figures, due in July 2025, will show whether this rebound marks the beginning of a sustained upward trend, particularly as more high-net-worth individuals reevaluate their UK pension positions post-LTA reform.
If you have a UK pension you should talk to us, the experts, to determine the right course of action for you.
