Transferring Your UK Pension to Ireland

You may be able to transfer a UK defined contribution workplace pension, personal pension or Self-Invested Personal Pension (SIPP) to an eligible Irish QROPS, subject to the rules of both schemes.

Some defined benefit pensions can also be transferred, but doing so means giving up valuable benefits such as a guaranteed retirement income. Where a proposed transfer involves safeguarded benefits worth more than £30,000, appropriate advice from an FCA-authorised adviser is generally required.

The UK State Pension cannot be transferred to a QROPS. Some other pensions, including most unfunded public service defined benefit schemes, cannot be transferred to an overseas defined contribution arrangement.

QROPS stands for Qualifying Recognised Overseas Pension Scheme. The receiving scheme’s eligibility must be checked before a transfer proceeds.

Reasons you might consider transferring include:

• Local management: Working with an Irish pension provider and adviser if you intend to retire in Ireland.
• Currency planning: Aligning retirement savings with expected spending in euro, depending on the investments and payment options selected.
• Investment choice: Accessing investment options that better suit your circumstances.
• Consolidation: Bringing eligible pensions together where this is suitable and cost-effective.
• Retirement and estate planning: Reviewing how the receiving scheme’s retirement options and death benefits fit your plans.

These are potential advantages rather than guaranteed benefits. A transfer may increase charges or result in the loss of valuable guarantees. Moving to Ireland does not require you to transfer your UK pension.

Pension Transfer Options for Irish Residents

If you live in Ireland and hold a UK pension, a transfer to an Irish QROPS may be possible. Eligibility depends on your existing pension, the receiving scheme’s rules, your circumstances and the applicable UK and Irish requirements.

An Irish buy-out bond may be suitable for certain transfers, but it is not the only possible receiving arrangement. Your adviser should confirm which Irish QROPS can accept your pension and compare a transfer with leaving your benefits in the UK.

CFC, through MyPension, can help you gather information about your pension and assess the available options.

Important: If the receiving overseas scheme is not a QROPS, your UK provider may refuse the transfer. If a transfer proceeds to a non-QROPS scheme, a UK tax charge of at least 40% may apply, potentially rising to 55%.

What is QROPS?

A Qualifying Recognised Overseas Pension Scheme (QROPS) is an overseas pension scheme that meets specified UK requirements for receiving transfers from UK registered pension schemes.

QROPS status does not guarantee that a transfer will be free of tax or suitable for you. Your adviser and pension providers should verify the receiving scheme’s status and the tax treatment of your proposed transfer.

HMRC publishes a recognised overseas pension schemes notification list. Inclusion on that list is not an HMRC guarantee that a scheme meets all the requirements or that a transfer will be free of UK tax.

Benefits of QROPS

Potential benefits of a suitable Irish QROPS transfer include local pension administration, access to appropriate investment options and retirement planning with an Irish adviser.

These benefits must be weighed against transfer costs, ongoing charges, investment risk, currency conversion costs and the loss of existing guarantees or benefits.

A transfer does not automatically reduce your tax liability or simplify inheritance tax. The tax treatment of pension income, lump sums and death benefits depends on the arrangement and your circumstances.

To explore your QROPS transfer options, consult one of our financial advisors today. They can provide expert guidance to help you make an informed decision about securing your retirement funds.

To find out whether transferring your UK pension is suitable for you, speak with one of our financial advisers.

• Receiving scheme: Confirm that the Irish scheme qualifies as a QROPS and can accept your particular pension. Inclusion on HMRC’s notification list does not guarantee a tax-free transfer.
• Existing benefits: Check whether transferring would mean losing guaranteed income, guaranteed annuity rates, protected retirement ages or other valuable benefits.
• Access age: Access to transferred UK pension benefits is generally restricted until age 55, with the UK normal minimum pension age rising to 57 from 6 April 2028. Scheme rules, protected pension ages and qualifying ill-health exceptions must also be checked.
• UK tax after transfer: UK tax rules can continue to affect some payments after a transfer, depending on your residence history, the transfer date and the payment involved. There is no universal requirement to remain outside the UK for ten tax years before accessing benefits.
• Overseas Transfer Charge: A 25% charge may apply unless an exemption is available. Being resident in Ireland and transferring to an Irish QROPS may qualify for the same-country exemption. Merely transferring to a scheme in the EEA does not provide an exemption.
• Overseas Transfer Allowance: The standard UK allowance is £1,073,100, although your available allowance may differ. Even where a transfer otherwise qualifies for an exemption, a 25% charge can apply to the amount exceeding your available allowance.
• Changes of residence: Moving country during the relevant five-year period after the transfer can change the Overseas Transfer Charge position.
• Irish pension limits: Ireland’s Standard Fund Threshold is €2.2 million in 2026. Your adviser should confirm how it applies to the receiving arrangement and your other pension benefits.
• Costs and risk: Compare all initial and ongoing charges, investment risks, currency costs and retirement options before deciding.

How Does QROPS Affect My Tax-Free Lump Sum?

Irish retirement lump sum tax limits apply across your relevant retirement lump sums, rather than separately to each pension:

• The first €200,000 is tax-free, subject to any allowance already used.
• The portion between €200,000 and €500,000 is taxed at 20%.
• Amounts above €500,000 are taxed at 40%, with USC also applying where required.

Relevant foreign pension lump sums are included when assessing these limits. A UK pension lump sum that is tax-free in the UK is not automatically tax-free in Ireland.

Your entitlement to a retirement lump sum depends on the receiving arrangement’s rules. The amount you can receive without Irish tax also depends on your previous retirement lump sums.

Why Consider a QROPS Transfer?

A QROPS transfer may be worth considering if its investment options, charges, retirement benefits and administration better suit your circumstances. Any potential advantages should be assessed against leaving your pension in the UK, including the tax consequences and any benefits you would lose.

1. Register with MyPension and add your UK pension details.
2. Authorise information gathering. Signing a transfer of agency document allows the adviser to obtain information about your pension. It does not itself authorise the transfer of your pension funds.
3. Review your existing pension. Your adviser will assess its benefits, charges, guarantees, transfer value and restrictions.
4. Compare your options. This includes leaving the pension in the UK and, where suitable, transferring to an eligible Irish QROPS.
5. Confirm eligibility, tax and charges. The providers and advisers should check the receiving scheme, residence requirements, available Overseas Transfer Allowance and any advice requirements.
6. Complete the transfer documentation if you decide to proceed. Your UK provider will require the appropriate forms and supporting information.
7. Confirm completion. Check receipt of the funds, any currency conversion and the agreed investment allocation.

You must provide your UK pension scheme administrator with the information required for an overseas transfer. HMRC form APSS263 sets out this information. Failure to provide the required information within 60 days of requesting the transfer can result in a 25% Overseas Transfer Charge.

The duration of a QROPS transfer largely depends on the information provided and your individual circumstances.

Transfer times vary between providers and individual cases. The process can take several months and may take longer where additional advice, documentation, residence checks or scheme due diligence is required.

Your adviser can provide an indicative timescale once the providers’ requirements are known. No completion date can be guaranteed.

What Are the Costs of a QROPS Transfer?

Costs may include adviser fees, receiving-scheme setup charges, UK provider exit charges, currency conversion costs and ongoing administration and investment charges.

Before proceeding, obtain a written breakdown of all charges and compare them with the cost of keeping your pension in the UK.

A separate UK Overseas Transfer Charge may also apply. An otherwise exempt transfer can still incur a 25% charge on any amount above your available Overseas Transfer Allowance.