What is QROPS?
A QROPS is a Qualifying Recognised Overseas Pension Scheme.
In simple terms, it is an overseas pension scheme that is designed to meet certain UK pension rules. This allows UK pension money to be held outside the UK while still remaining within a recognised pension structure.
For New Zealand, a QROPS is usually a New Zealand superannuation scheme that has been structured to follow key UK pension requirements. These rules matter because UK pensions receive tax advantages, and HMRC wants to make sure transferred pension money continues to be used for retirement purposes.
A QROPS is not just any overseas investment account. It must be a genuine pension scheme, follow relevant local rules, and continue to meet UK conditions.
In plain English: a QROPS is an overseas pension scheme that is recognised for UK pension purposes and may be able to receive UK pension money if the rules are met.
Our expert take on What is QROPS: A QROPS is an overseas pension scheme that mimic how a UK pension scheme works and reports to the HMRC – here are the conditions. Because of this UK authorities will allow transfers from UK pension to QROPS.
QROPS and ROPS: what is the difference?
You may see both QROPS and ROPS used online.
QROPS is the older and more commonly used term. HMRC now refers to its public list as the Recognised Overseas Pension Schemes, or ROPS, notification list.
For most people researching UK pensions in New Zealand, the practical meaning is similar: the overseas scheme needs to meet HMRC’s recognised overseas pension scheme conditions.
However, there is one important point. HMRC says every QROPS must first be a ROPS, and that whether a scheme meets the ROPS requirements is a factual test. If a scheme manager wants the scheme to be treated as a QROPS, they must notify HMRC that it meets the requirements.
HMRC also says its public ROPS list contains schemes that have told HMRC they meet the conditions and have asked to be included. HMRC does not guarantee that listed schemes are valid ROPS or that transfers to them will be free of UK tax.
Why does QROPS status matter?
QROPS status matters because UK pension funds cannot simply be moved into any overseas scheme.
The overseas scheme must meet UK pension conditions. If it does not, the UK pension provider may refuse the transfer, or significant UK tax charges may apply. GOV.UK says that where the receiving overseas scheme is not a QROPS, the UK pension scheme may refuse the transfer, or a tax charge of at least 40% may apply.
This is why QROPS status is not just a label. It affects whether a scheme can receive UK pension funds and whether the pension money remains within an accepted retirement framework.
Our insight “A scheme may be a QROPS when you start investigating pension transfer, but it needs to be at the point of transfer. We have seen examples of instances where schemes have closed to new members while members have been transferring their pensions. This potentially exposes members to a 40% tax charge on their transfer.”
Why do QROPS rules exist?
QROPS rules exist because UK pensions are tax-advantaged retirement savings.
The UK allows some pension money to move overseas, but only where the receiving scheme follows rules that broadly protect the retirement purpose of those funds.
That means a QROPS must usually restrict early access, operate as a pension scheme, meet local regulatory requirements, and report certain information to HMRC.
One of the most important requirements is pension access age. The UK normal minimum pension age is currently 55 and is scheduled to rise to 57 from 6 April 2028, unless protection applies.
Our insight — “A scheme may be a QROPS when you start investigating pension transfer, but it needs to be at the point of transfer. We have seen examples of instances where schemes have closed to new members while members have been transferring their pensions. This potentially exposes members to a 40% tax charge on their transfer.”
What makes a scheme a QROPS?
A scheme generally needs to meet several requirements to be treated as a QROPS.
| Requirement | What it means in plain English |
|---|---|
| It is established outside the UK | The scheme is based in another country, such as New Zealand. |
| It is a pension scheme | It must operate for retirement purposes, not as a normal savings or investment account. |
| It is recognised locally | The scheme must be recognised under the laws and tax rules of the country where it is established. |
| It restricts early access | It must usually prevent members from accessing UK pension money before the permitted pension age. |
| It reports to HMRC | The scheme must report certain payments and events involving UK pension transfer members. |
| It follows pension investment rules | It must avoid investments or benefits that would breach UK pension rules. |
| It keeps meeting the rules | QROPS status can be affected if UK rules, scheme rules, or local legislation change. |
Our QROPS review checklist
Before treating a scheme as a QROPS option, we check more than whether the scheme name appears on the HMRC list. The list is a starting point, not a guarantee. Our clients want to be sure that the QROPS that they are transferring to is bona fide and will remain a QROPS so that they are not exposed to a large tax bill. We check by following a comprehensive process.
| Check | What we look for |
|---|---|
| HMRC list status | Whether the scheme currently appears on HMRC’s Recognised Overseas Pension Schemes notification list. HMRC says the list contains schemes that have told HMRC they meet the conditions, but HMRC does not guarantee that listed schemes are valid ROPS. Also schemes may elect not to appear on the published list. |
| Scheme structure | Whether the scheme is genuinely established as an overseas pension or superannuation scheme, not simply an investment account. |
| Scheme deed and rules | Whether the scheme rules restrict access in line with UK pension requirements and continue to treat the funds as retirement savings. This usually takes the form of explicit rules in the scheme Trust Deed to deal with UK pension transfer amounts. We want to see specific ringfencing provisions for UK pension transfer funds. |
| Local recognition | Whether the scheme is properly recognised and operated under New Zealand law and tax rules. This will require that the scheme be registered in New Zealand as a Superannuation Scheme, and that the Scheme is also registered with the Inland Revenue. |
| Access age | Whether the scheme prevents early access to UK pension money except where permitted under the relevant pension rules. This will often require a deep dive into the Schemes documentation to ensure there are no hardcoded variables that might come back to bite, for example stating explicitly that early access is from age 55, rather than pegging it to the Normal Minimum Pension age. |
| HMRC reporting obligations | Whether the scheme manager understands and can meet the required reporting obligations to HMRC. |
| Accepted transfer types | Whether the scheme can accept the specific type of UK pension being considered. |
| Tax position | Whether there are UK or New Zealand tax issues that need to be checked before relying on the scheme. |
| Suitability | Whether the scheme is suitable for the person’s circumstances, including investment needs, residency plans, currency exposure, fees, and retirement objectives. Ensuring that there are no hidden fees within the QROPS, such as high currency conversion fees, investing in funds managed by the QROPS which have high management fees. |
| New Zealand reporting obligations | Ensuring that the QROPS is going to remain a New Zealand superannuation scheme by constantly monitoring their reporting status. |
In short, we treat QROPS status as the beginning of the review, not the end. A scheme still needs to be current, compliant, suitable, and appropriate for the person’s circumstances.
QROPS status is not permanent
A scheme does not become a QROPS forever just because it once appeared on the HMRC list.
QROPS status can change. Scheme rules can change. Local pension laws can change. UK pension rules can also change.
HMRC says the ROPS list can be updated at short notice, including temporary removals while reviews are carried out. HMRC also states that it cannot guarantee listed schemes are valid ROPS.
This is why it is important to check the current position before relying on any scheme.
The KiwiSaver example: why QROPS rules matter
KiwiSaver is a useful New Zealand example of why QROPS status matters.
Some KiwiSaver schemes previously received UK pension transfers. However, KiwiSaver had their QROPS status removed as the QROPS rules became incongruent with the New Zealand KiwiSaver legislation. KiwiSavers must offer access for first home buyers, financial hardship etc, all of these allowed access before normal minimum pension age in the UK. Two sets of rules that could not work together.
This left people stranded in their KiwiSaver schemes as part of the QROPS rules are that you can only transfer to another QROPS, and KiwiSaver rules only allow you to transfer to another KiwiSaver. As no KiwiSavers were QROPS anymore funds were stuck.
The lesson is that a scheme must continue to satisfy the UK pension rules to remain suitable for UK pension money.
IRD now has a separate pathway for certain older “locked-in” UK pension funds already held in KiwiSaver. From 1 April 2025, these locked-in UK pension funds can be moved to a New Zealand QROPS when specific requirements are met. IRD describes locked-in funds as the original UK pension money transferred to KiwiSaver before 17 June 2015, plus investment returns on that amount.
Our explanation — we went to the Inland Revenue and a Select Committee prior to the de-registration of KiwiSaver schemes as QROPS in 2015 and explained the risk. Unfortunately, KiwiSaver schemes did not see the risk or advise on the risk to members. We saw it early and had advised everyone against KiwiSaver as a QROPS option. It has taken 10 years to get a legislative path out for members. Getting the QROPS right is crucial.
Are all New Zealand QROPS the same?
No. New Zealand QROPS can differ significantly.
They may vary by:
- scheme structure
- fees
- investment options
- currency options
- tax treatment
- trustee arrangements
- reporting processes
- flexibility at retirement
- suitability for different member circumstances
This is why choosing a QROPS is not only about whether a scheme appears on the HMRC list. It is also about whether the scheme is suitable.
See our section on types of New Zealand QROPS
What are the advantages of using a New Zealand QROPS?
A New Zealand QROPS may be useful for people who have UK pension funds and now live in New Zealand, plan to retire in New Zealand, or want their retirement savings managed in a New Zealand-based structure.
Potential advantages may include:
- holding pension funds in New Zealand
- access to local advice and administration
- investment options in New Zealand dollars, sterling, or other currencies
- simpler retirement planning for New Zealand residents
- potential estate planning flexibility
- access to New Zealand-regulated superannuation schemes
These benefits depend on the scheme and the person’s circumstances. They should not be assumed automatically.
Go to our section on Advantages of NZ QROPS
What are the risks of QROPS?
The main risks are usually caused by misunderstanding the rules.
Common QROPS risks include:
- assuming every overseas pension scheme is a QROPS
- assuming HMRC’s list is a guarantee
- confusing KiwiSaver with a current QROPS option
- choosing a scheme without checking its rules and suitability
- accessing pension money too early
- ignoring future residency plans
- overlooking UK reporting and tax consequences
- transferring from a UK pension with valuable guarantees
A QROPS can be useful, but it needs to be understood as a regulated pension structure, not just a way to move money overseas.
See out sections on QROPS myths and Transfer traps and risks
Where QROPS fits into the wider UK pension conversation
This page explains what QROPS means.
The next questions are usually about whether a UK pension can be transferred, whether transferring is suitable, what tax may apply, and which type of New Zealand QROPS could be appropriate.
Those questions are best covered on separate pages:
- What is a pension transfer
- Which UK pensions can be transferred?
- UK pension transfer to New Zealand tax rules
- Transfer process
- Final salary pension transfers
- Types of New Zealand QROPS
What is QROPS: Summary
A QROPS is an overseas pension scheme that is designed to meet UK recognised overseas pension scheme rules.
For New Zealand, QROPS status matters because not every retirement savings scheme qualifies. KiwiSaver is the clearest New Zealand example: it was once part of the UK pension transfer landscape, but it is no longer a current QROPS option for new UK pension transfers.
The important point is that QROPS status depends on rules. A scheme must continue to meet the relevant conditions, and HMRC’s list should not be treated as a guarantee
Before relying on any QROPS, check the current scheme status, the scheme rules, and whether the scheme is suitable for your personal circumstances.
What is QROPS: FAQs
What does QROPS stand for?
QROPS stands for Qualifying Recognised Overseas Pension Scheme.
What is a QROPS in simple terms?
A QROPS is an overseas pension scheme that follows certain UK pension rules, allowing UK pension funds to be held outside the UK within a recognised pension structure.
Is QROPS the same as ROPS?
Not exactly. QROPS is the older and more widely used term. HMRC now refers to its public list as the Recognised Overseas Pension Schemes, or ROPS, notification list.
Is KiwiSaver a QROPS?
No. KiwiSaver is not generally a QROPS option for new UK pension transfers. Some older UK pension funds were transferred into KiwiSaver before the 2015 rule changes, but those are legacy cases.
Can a scheme lose QROPS status?
Yes. A scheme can lose QROPS status if it no longer meets the rules. HMRC also says schemes can be removed from the ROPS list at short notice while reviews are carried out.
Does appearing on the HMRC list guarantee that a scheme is valid?
No. HMRC says it cannot guarantee that listed schemes are valid ROPS or that transfers to them will be free of UK tax.
Are all New Zealand QROPS the same?
No. New Zealand QROPS can differ by structure, fees, investment options, tax treatment, currency options, trustee arrangements, and retirement flexibility.
Is this page about transferring a UK pension?
Only partly. This page explains what QROPS means. The full transfer process, tax rules, pension eligibility, and risks should be covered on separate transfer pages.
Why does QROPS status matter?
QROPS status matters because UK pension funds generally need to be transferred only to recognised overseas pension schemes. If the receiving scheme is not a QROPS, the UK provider may refuse the transfer or significant UK tax charges may apply.
Last reviewed: 1 June 2026
Reviewed by: Simon Swallow, M Com
Company: Charter Square Services Limited
This article is general information only and does not take into account your personal circumstances. UK pension and New Zealand tax rules can change, and the right approach depends on your pension type, residency, tax position, and retirement plans.
