Transferring a defined contribution pension abroad
If you have a UK-based defined contribution pension, you should be able to transfer your pension abroad to any recognised overseas pension scheme (ROPS).
Transferring to a ROPS is important because these schemes are recognised by HMRC as being ineligible for the overseas transfer charge, meaning you won’t have to pay additional tax when you move your pension abroad.
Should you transfer your pension to a ROPS, it’s important to know that your pension benefits will be tested against the Overseas Transfer Allowance (OTA) to assess whether HMRC charges should be incurred.
View a list of overseas ROPS pensions.
Overseas pension transfers for defined contribution pensions typically take longer than most UK transfers because of additional due diligence requirements.
See How can I transfer pensions? for more information.
Overseas transfer allowance (OTA)
The lifetime allowance (LTA) was fully abolished on 6 April 2024. In its place, the overseas transfer allowance (OTA) was set at £1,073,100. The OTA regulates the tax treatment of transfers to qualifying recognised overseas pension schemes (QROPS). Transfers exceeding the OTA will incur a 25% overseas transfer charge on the excess amount. The overseas transfer charge may also apply to funds within the OTA unless certain exclusion conditions are met. In contrast to the LTA, the OTA is an entirely separate allowance so certain payments, such as taxable pension income and lump sum death benefits paid after age 75, fall outside the OTA assessment.
Transferring a defined benefit pension abroad
It’s usually possible to transfer a defined benefit pension abroad, but you’ll first need to make sure you’re aware of any valuable benefits which you’ll lose upon transferring it. If the pension is worth more than £30,000, then you must also seek advice from an Independent Financial Adviser (IFA).
If you work in the public sector, you may find that your defined benefit pension isn’t eligible for an international pension transfer. For example, it’s not possible to transfer an NHS pension overseas, regardless of whether the overseas pension is ROPS. So check with your provider first.
See How can I transfer pensions? for more information.
Transferring multiple pensions overseas
If you have more than one pension, and you plan on living abroad or already live abroad, you may find it easier to first consolidate your pensions into one easy-to-manage plan.
If you want to consolidate your pensions into a UK-based plan before transferring it overseas, PensionBee can help. We’re a leading online pension provider that makes it easy to combine, contribute and withdraw from your pension online.
Risk warning
As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.
Last edited: 06-04-2025
