QROPS After Brexit: What Changed for UK Expats (2026)

Brexit did not change the QROPS rules overnight, but it set in motion changes that have reshaped overseas pension transfers for UK expats, especially those living in Europe. The most significant shift came at the October 2024 Budget, which removed a long-standing exclusion that had made many EU transfers free of the Overseas Transfer Charge.

In short

• Brexit ended the freedom of movement context in which many EU QROPS transfers were arranged.
• The big change came in October 2024, not in 2020.
• The EEA and Gibraltar exclusion from the Overseas Transfer Charge was removed.
• Transfers to EEA or Gibraltar QROPS now face 25% unless you live in the QROPS country.
• UK platforms also tightened non-resident rules after losing EEA passporting.

What Brexit changed directly

The immediate effect of Brexit on pensions was felt less in the transfer rules and more in how UK firms could serve customers abroad. UK platforms lost the passporting rights that had let them service customers across the European Economic Area, which is one reason so many now restrict non-resident accounts. The QROPS framework itself remained, but the environment around it grew more complicated.

The October 2024 turning point

The decisive change for QROPS came at the Budget on 30 October 2024. Until then, transfers to a QROPS based in the EEA or Gibraltar were excluded from the 25% Overseas Transfer Charge wherever the member lived. From that date the exclusion was removed. Now the charge applies to such transfers unless the member is tax resident in the same country as the QROPS. For an expat in, say, France or Spain transferring to a Malta based QROPS, that means a charge where previously there was none.

What this means for EU-resident expats now

The practical effect is that the once-popular route of moving a UK pension to an EEA based QROPS while living elsewhere in Europe now usually carries the 25% charge. The exclusion survives only where you live in the same country as the scheme, which for most EU expats means there is no charge-free EEA QROPS unless a recognised scheme exists in their own country of residence. Many find that retaining a UK SIPP is the simpler course.

Check the position before acting

Because the rules changed recently and continue to be administered closely, anyone considering a QROPS should confirm the current charge position for their exact country of residence and intended destination scheme, and check that the scheme is on HMRC's recognised list at the time of transfer.

FAQ

Did Brexit change the QROPS rules?

Not the rules directly at first. Brexit ended EEA passporting for UK firms, prompting platforms to restrict non-residents. The major QROPS change came at the October 2024 Budget.

What changed in October 2024?

The exclusion from the Overseas Transfer Charge for QROPS based in the EEA and Gibraltar was removed for transfers on or after 30 October 2024.

Do EU expats now pay the charge?

Usually yes for a transfer to an EEA or Gibraltar QROPS unless they are resident in the same country as the scheme. The exclusion based purely on the scheme being in the EEA is gone.

Is there still a charge-free QROPS route in the EU?

Only where you are tax resident in the same country as a recognised scheme. Otherwise the 25% charge generally applies.

Should I just keep my UK pension?

Many expats find retaining a UK SIPP simpler now that the EEA exclusion has gone. Whether to transfer is a regulated decision that warrants advice.