Moving Your UK Pension Abroad 2026/27: QROPS, Drawdown and Tax
Quick answer
You can leave a UK pension in the UK and draw it under UK PAYE, with double-taxation treaty relief, or transfer it to a QROPS. Transfers above your overseas transfer allowance, or that fail the exemption conditions, face a 25% Overseas Transfer Charge. The State Pension is frozen in many countries.
UK pension options when you move abroad
| Option | How it works and the tax |
|---|---|
| Leave the pension in the UK and draw it | The pension stays with your UK provider and is paid to you abroad. It is normally taxed in the UK under PAYE. A double-taxation treaty between the UK and your new country can reduce or remove the UK tax so you are not taxed twice on the same income. |
| Transfer to a QROPS | A QROPS is a Qualifying Recognised Overseas Pension Scheme that meets HMRC requirements for receiving a UK transfer. Transferring to a non-qualifying scheme can trigger an unauthorised payment tax charge, so the receiving scheme must be on the recognised basis. |
| Overseas Transfer Charge | A 25% charge applies to a QROPS transfer that exceeds your overseas transfer allowance, or that is not exempt. The allowance is GBP 1,073,100. You usually do not pay the charge on a QROPS provided by your employer, or where you live in the country the QROPS is based in and the transfer is within your available allowance. |
| UK State Pension abroad | You can claim and receive the UK State Pension abroad if you have enough qualifying National Insurance. It rises each year only in the EEA, Gibraltar, Switzerland, and countries with a social security agreement with the UK (except Canada and New Zealand). Elsewhere it is frozen at the rate you first received. |
When you move abroad, a UK pension does not have to move with you. You can leave it with your UK provider and draw an income that is normally taxed under UK PAYE, with a double-taxation treaty often reducing or removing the UK tax so you are not taxed twice. The alternative is to transfer it to a QROPS, a Qualifying Recognised Overseas Pension Scheme that meets HMRC requirements. The table above maps each option to how it works and the tax that attaches to it.
The figure that catches most people is the Overseas Transfer Charge: 25% on a QROPS transfer that exceeds your overseas transfer allowance of GBP 1,073,100, or that does not meet the exemption conditions. Separately, the UK State Pension is only uprated each year in the EEA, Gibraltar, Switzerland, and countries with a UK social security agreement (Canada and New Zealand excepted). In every other country it is frozen at the rate you first received, so its real value erodes with inflation. Pension transfers are complex and the right route depends on your destination, scheme, and residence, so professional advice is normally needed.
This guide sits in our expat tax cluster. Start with the pillar, UK tax residency explained, which sets out whether you are still UK resident at all. From there, UK non-resident tax rules covers how non-residents are taxed on UK income, and am I still UK resident if I live abroad walks through the residence test in plain terms. To check what you have built up before you go, see our State Pension forecast guide.
Frequently asked questions
Can I transfer my UK pension abroad?
Yes. You can transfer a UK pension to a Qualifying Recognised Overseas Pension Scheme (QROPS), which is an overseas scheme that meets HMRC requirements. Transferring to a scheme that is not recognised can trigger a UK tax charge for an unauthorised payment, so the destination scheme must qualify.
What is the overseas transfer charge?
It is a 25% tax charge on a QROPS transfer that exceeds your overseas transfer allowance of GBP 1,073,100, or that does not meet the exemption conditions. You usually do not pay it if the QROPS is provided by your employer, or if you live in the country the QROPS is based in and the transfer is within your available allowance.
Is my UK State Pension frozen if I move abroad?
It depends on the country. The UK State Pension rises each year only if you live in the EEA, Gibraltar, Switzerland, or a country with a social security agreement with the UK (except Canada and New Zealand). In other countries, including Australia and Canada, it is frozen at the rate you were first paid and does not rise with inflation.
Do I keep paying UK tax on my pension if I live abroad?
A UK pension you leave in the UK is normally taxed under UK PAYE. A double-taxation treaty between the UK and your new country can reduce or remove the UK tax, so the same income is not taxed twice. The relief available depends on the specific treaty and your residence status.
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General information, not financial advice. Tax rules and figures can change; check the current position on gov.uk before acting.