Transfer of Pension Benefits from UK to Ireland.

If you have a Pension in the UK with a previous employer but are now resident in Ireland, is it possible to transfer your pension out of the UK and back to an Irish Pension? 

There has been a marked increase of late in queries from clients looking to find out what options are available to them, if any, regarding the transfer of pension benefits from the UK to Ireland.

The wisdom of BREXIT will no doubt be debated for decades to come. It is probably true to say that nobody knows what BREXIT will actually look like when it does happen, and it will take at least a decade to see what the long-term consequences are for the UK and the rest of Europe. However, some Irish residents with pension funds in the UK are worried about leaving their pension funds there and are exploring the options available to them.

In principle, there are approved mechanisms to allow the transfer of Pension Benefits from the UK to an Irish Pension Fund. HMRC in the UK allows the transfer of UK Pension Benefits to an overseas pension provided the receiving pension scheme / provider has been approved under what is known as the Qualifying Recognised Overseas Pension Scheme (QROPS). There are a number of QROPS approved pension providers in Ireland.

There are further conditions as provided for under the QROPS mechanism primarily related to residency and the length of time since the individual left the UK.

Also a new 25% tax charge on transfers to QROPS was introduced in April 2017 unless you satisfy one of the following conditions:

• The individual’s and the scheme’s country of residence are the same
• The individual’s and the scheme’s country of residence, even if they are different, are both within the European Economic Area
• The receiving QROPS is an occupational pension scheme provided by their employer in respect of their current employment
• The receiving QROPS is set-up by an international organisation
• The receiving QROPS is an overseas public service pension scheme

In effect this 25% charge will only apply where you transfer your pension benefits outside the European Economic Area - so in reality transfers to Ireland are allowed and exempt from the 25% charge.

In summary, it is possible to transfer pension benefits from the UK to Ireland provided certain residency criteria are fulfilled and also where the receiving pension scheme / provider is operating under the QROPS system.

If you have any queries relating to a pension you might have in the UK, please feel free to me on 01 5267770.