QROPS/ROPS

What is a QROPS/ROPS scheme?

A QROPS means a Qualifying Recognised Overseas Pension Scheme that run by trustees in a jurisdiction outside of the UK.

If you want to transfer your UK pension to an SMSF, that SMSF must be a QROPS approved by HMRC.

The list of SMSFs have been approved as QROPS by HMRC can be found in this link:  ROPS list .

What is the criteria for an SMSF to be a QROPS/ROPS?

• All SMSF members need to be more than 55 years old.

No SMSF can be a QROPs if the member is less than 55 years old. The reason being is that the UK legislation was amended to require a QROPS to meet the “pension age test” On 6 April 2015.

The “pension age test” requires that money transferred from a UK registered scheme into a QROPS can not be paid before the member turns 55 years old unless the member has retired due to ill-health.

Can I transfer my UK pension to an SMSF registered as a QROPS?

You and your SMSF need to meet the following conditions:

• you are less than 75 years old before the transfer.
• if you are aged between 67 and 74, you need to pass the work test.

How much can I transfer my UK pension to an SMSF registered as a QROPS?

• if you are less than 67 years old, you can transfer $330,000 to your SMSF as non-concessional contributions using bring forward rules;
• if you are more than 67 years old and have met the work test, you can transfer $110,000 as non-concessional contributions;
• if you transfer more than the above amounts, the exceeded amounts will attract excess contribution tax.

How can we help transfer your UK pension to an SMSF?

We are QROPS specialists and can assist you with the followings:

• set up your SMSF with a QROPS complying trust deed;
• amend your SMSF trust deed if your trust deed is not a QROPS compliant deed;
• register your SMSF as a QROPS with HMRC;
• notify you when a QROPS has been approved and help you with the transfer process;
• allocated the transferred amount correctly to your SMSF member account.

How can you transfer your UK pension to your SMSF after the QROPS application approved by HMRC?

Before applying for the transfer, your SMSF must you be registered as a QROPS with HMRC.  After that, you can request the transfer from UK pension scheme using this form: APSS263.

This form will give the UK pension scheme administrator information to transfer your pension to your SMSF.

How much does it cost to set up an SMSF to be QROPS compliant?

Our setup costs are $880 for an new SMSF with individual trustees and $1,760 if a corporate trustee to be used.

The costs cover the following:

• a QROPs compliant deed prepared by the legal practitioner;
• TFN/ABN application;
• All the other documents, including member application form, trustee consent and investment strategy etc.

How much does it cost to amend the SMSF existing trust deed to be QROPS compliant?

Our costs are $660 to amend your existing  SMSF trust deed to be QROPS compliant.

It is an once-off payment that can be paid by your existing SMSF.

Our QROPs deed is specifically designed to meet all the requirements of HMRC.

How much does it cost to register the SMSF with HMRC as QROPS compliant superannuation fund?

If we apply for the QROPS registration for your SMSF, our costs are $660.

It is an once-off payment that can to be paid by your existing SMSF.

How long does it take to register my SMSF with HMRC?

It takes about 2-5 weeks. We will apply for the registration on behalf your SMSF and advise your immediately once the QROPS has been approved.

After that, you can organised the transfer of your UK pensions to your SMSF.

What is the reporting obligations for a QROPS complying SMSF?

In addition to all the reporting obligations in Australia, such as lodgement of tax return and audit, you also need to report the following to HMRC:

    Within 30 days

1. your SMSF is no longer a QROPS;
2. information provided previously was incomplete or not accurate.

    Within 90 days

1. any payments to members;
2. any transfers or rollovers;
3. SMSF members moves to another country;
4. new address for the member living overseas.

You also need to report to HMRC if there is any other overseas pension transferred to your SMSF within 91 days. Please note we can help you meet all the reporting requirements.

What forms should I use to fulfil the HRMC’s reporting requirements?

1. form APSS251A must be sent to notify HMRC of any changes to the scheme within 30 days of the change;
2. form APSS251B must be sent to notify HMRC if the scheme ceases to meet the requirements to be a Recognised Overseas Pension Scheme within 30 days of the change;
3. form APSS253 must be sent to HMRC to notify HMRC of payments made from UK tax relieved funds within 90 days of the payment.

You can find out more about your reporting responsibilities in the Pensions Tax Manual. Go to www.hmrc.gov.uk/manuals/ptmanual/ptm112700.htm

Do I need to re-notify HRMC that my SMSF continues to meet the conditions to be a QROPS?

HMRC requires you to re-notify HMRC that your scheme continues to meet the conditions to be a QROPS. You must make the re-notification 5 years from the date of this letter and every 5 years thereafter. The first re-notification date for this scheme will be 19 April 2026. You can re-notify up to 6 months before each due date. If you don’t re-notify, your scheme will be excluded from being a QROPS. Please see HMRC’s re-notification guidance in the Pensions Tax Manual. Go to www.hmrc.gov.uk/manuals/ptmanual/ptm112600.htm

Will the transferred UK pension be taxed in Australia?

The transferred amount can be taxable in Australia. Please refer to this link for more information: QROPS Tax Advice 

We provide full administration and taxation services for QROPS SMSFs and can help prepare all the required documents and reports to be lodged with HMRC.

Should you have any questions, please let us know and our QROPS specialists will help you with all your needs.