QROPS/ROPS

What is a QROPS/ROPS Scheme?

A QROPS (Qualifying Recognised Overseas Pension Scheme) is a type of pension scheme managed by trustees outside of the UK. These schemes are designed to meet specific requirements set by HMRC (Her Majesty’s Revenue and Customs) to qualify for favorable tax treatment.

In Australia, all retail or industry funds, such as AustralianSuper, Australian Retirement Trust, Aware Super, etc., are not QROPS. Therefore, you may need to consider an SMSF.

If you are unfamiliar with what an SMSF is, please refer to this link: SMSF FAQ.

If you want to transfer your UK pension to a Self-Managed Super Fund (SMSF) in Australia, the SMSF must be approved as a QROPS by HMRC.

You can find the list of SMSFs that have been approved as QROPS by HMRC at this link: ROPS list .

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

All SMSF members need to be over 55 years old.

An SMSF cannot be a QROPS if any member is under 55 years old. This requirement is due to an amendment in UK legislation on 6 April 2015, which introduced the “pension age test.”

The “pension age test” requires that money transferred from a UK-registered scheme into a QROPS cannot be paid out 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?

Yes, you can transfer your UK pension to an SMSF registered as a QROPS, provided both you and your SMSF meet the following conditions:

• You must be under 75 years old before making the transfer.

How Much Can I Transfer from My UK Pension to an SMSF Registered as a QROPS?

If you are under 75 years old, you can transfer up to $360,000 to your SMSF as non-concessional contributions using the bring-forward rules.

Amounts exceeding this limit will attract excess contribution tax.

How Can We Help Transfer Your UK Pension to an SMSF?

As QROPS specialists, we offer comprehensive assistance with transferring your UK pension to an SMSF. Our services include:

• Setting up your SMSF with a QROPS-compliant trust deed.
• Amending your existing SMSF trust deed to ensure QROPS compliance.
• Registering your SMSF as a QROPS with HMRC.
• Notifying you upon QROPS approval and assisting with the transfer process.
• Properly allocating the transferred amount to your SMSF member account.

How Can You Transfer Your UK Pension to Your SMSF After HMRC Approves Your QROPS Application?

Once your SMSF is registered as a QROPS with HMRC, you can proceed with the transfer of your UK pension. To do this, follow these steps:

1. Ensure QROPS Registration: Confirm that your SMSF is officially registered as a QROPS with HMRC.
2. Request the Transfer: Use Form APSS263 to request the transfer from your UK pension scheme. This form provides the UK pension scheme administrator with the necessary information to transfer your pension to your SMSF.

By following these steps, you can facilitate the smooth transfer of your UK pension to your SMSF.

How Much Does It Cost to Set Up an SMSF to be QROPS Compliant?

Our setup costs are:

• $880 for a new SMSF with individual trustees.
• $1,760 if a corporate trustee is used.

These costs cover:

• A QROPS-compliant deed prepared by a legal practitioner
• TFN/ABN application
• All other documents, including the member application form, trustee consent, investment strategy, and more

How Much Does It Cost to Amend an Existing SMSF Trust Deed to be QROPS Compliant?

The cost to amend your existing SMSF trust deed to meet QROPS compliance is $660.

This is a one-off payment that can be made by your existing SMSF. Our QROPS deed is specifically designed to meet all HMRC requirements.

How Much Does It Cost to Register the SMSF with HMRC as a QROPS-Compliant Superannuation Fund?

If we handle the QROPS registration for your SMSF, the cost is $660.

This is a one-off payment that can be made by your existing SMSF.

How Long Does It Take to Register My SMSF with HMRC?

Registration takes about 2-5 weeks. We will apply for the registration on behalf of your SMSF and inform you immediately once the QROPS approval is granted. After approval, you can organize the transfer of your UK pensions to your SMSF.

What Are the Reporting Obligations for a QROPS-Compliant SMSF?

In addition to Australian reporting obligations, such as lodging tax returns and audits, you must also report the following to HMRC:

Within 30 Days:

• If your SMSF is no longer a QROPS
• If previously provided information was incomplete or inaccurate

Within 90 Days:

• Any payments to members
• Any transfers or rollovers
• If an SMSF member moves to another country
• A new address for a member living overseas

You must also report any overseas pension transferred to your SMSF within 91 days. We can assist with meeting these reporting requirements. Our cost for helping with HMRC reporting obligations is $220 per year.

What Forms Should I Use to Fulfill HMRC’s Reporting Requirements?

• Form APSS251A: Notify HMRC of any changes to the scheme within 30 days.
• Form APSS251B: Notify HMRC if the scheme ceases to meet the QROPS requirements within 30 days.
• Form APSS253: Notify HMRC of payments made from UK tax-relieved funds within 90 days.

We can help you complete these forms and ensure compliance with HMRC.

Do I Need to Re-Notify HMRC That My SMSF Continues to Meet the Conditions to be a QROPS?

Yes, HMRC requires re-notification every 5 years to confirm your scheme continues to meet QROPS conditions. 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. Failure to re-notify will result in your scheme being excluded from QROPS status. For more information, see HMRC’s re-notification guidance in the Pensions Tax Manual at www.hmrc.gov.uk/manuals/ptmanual/ptm112600.htm.

Will the Transferred UK Pension Be Taxed in Australia?

The transferred amount may be taxable in Australia. For more information, please refer to this link: QROPS Tax Advice.

We offer full administration and taxation services for QROPS SMSFs and can prepare all required documents and reports for HMRC.

If you have any questions, let us know, and our QROPS specialists will assist with all your needs.