- What is the QROPS 5 year rule?
After a QROPS transfer, HMRC monitors your residency for 5 years. If you move to a third country (not UK, not India) within this period, a 25% Overseas Transfer Charge may apply. Staying in India keeps you compliant.
2. What is the 10 year rule for QROPS?
From April 2024, HMRC extended reporting obligations. The scheme must report payments for 10 years after transfer. This affects compliance, not eligibility. Indian pension provider handles this.
3. Can I withdraw from QROPS?
Yes, In India, withdrawals are allowed by the receiving scheme from the age 55 onwards, 30% tax free lump sum can be withdrawn from the total fund value and rest 70% must be used to purchase the annuity.
4. What happens to my QROPS if I move back to the UK?
If you return to the UK within 5 years of transfer, HMRC may impose a 25% Overseas Transfer Charge on the fund value. Beyond 5 years, there’s no penalty.
