The TL;DR
Your UK pension stays put when you leave. It doesn't need to move, doesn't need to be transferred, and in most cases should not be. The mistake most people make is either assuming it has to follow them, or ignoring it entirely until a decision that should have happened before they left has to happen in a hurry. Both cost money.
The charge most people miss is the Overseas Transfer Charge: 25% of your entire pot, applied if you transfer to a QROPS (Qualifying recognised overseas pension scheme) without meeting the right exemptions. The EEA blanket exemption was removed in October 2024, so guidance written before that date no longer applies. Alongside the transfer question, there is a 2028 access age change and a pension tax position that HMRC does not sort for you automatically.
This edition covers all three clearly, calls out the edge cases that catch people out, and ends with the six questions to take to a specialist so the hour you spend with one actually counts.
Covered in this article
1. 🗂️ Leave it or move it? The decision most people overthink
Your UK pension stays where it is when you leave. A SIPP or workplace pension doesn't move when you do, doesn't need to be transferred, and in most cases should not be. That is the correct starting position for most people, and simpler than most people expect.
These are the key figures for 2026/27:
Figure | Amount (2026/27) |
|---|---|
Annual allowance (with UK earnings) | £60,000 |
Money Purchase Annual Allowance (after flexible access) | £10,000 |
Tax-free lump sum cap (PCLS) | £268,275 |
Overseas Transfer Allowance | £1,073,100 |
Overseas Transfer Charge | 25% |
Minimum pension access age | 55 (rising to 57 from April 2028) |
Depending on your situation, one of these applies:
Still paying in? Once you're non-resident with no UK taxable earnings, personal contributions no longer receive UK tax relief and the government top-up stops. Find out before you go, not after the first payment bounces.
Thinking about transferring to an overseas scheme? That decision is in Section 3. The charge for getting it wrong starts at 25% of your pot.
Already drawing pension income? Skip to Section 4. If you are also still contributing to any pension while drawing from another, read Section 2 first.
Next Step: Request a pension statement from every scheme you hold before leaving the UK. Know your total pot value, your projected access date, and whether any scheme is defined benefit.
2. ⏱️ The date to put in your diary: 6 April 2028
The minimum age at which most people can access their pension without a tax charge goes from 55 to 57 on 6 April 2028. That is confirmed and not going to change. If you are 53 or 54 right now, or planning a move that puts you abroad around that window, this date has a direct effect on your options.
Two things worth knowing before you plan around access age:
Protected pension age: Some schemes allow earlier access, but that protection had to be in place before 4 November 2021 and is scheme-specific. Check your documentation before assuming it applies to you.
Money Purchase Annual Allowance (MPAA): The moment you flexibly access any part of your pension, your annual allowance drops from £60,000 to £10,000. If you are still contributing to another pension while drawing from one, this is a binding limit that applies immediately and cannot be undone.
Worth knowing: The MPAA kicks in even on a small or partial flexible access. If you intend to keep contributing after you start drawing, take advice before you trigger it. The order of operations matters.
Next Step: Check your pension documentation for any protected pension age. If none exists, assume the 57 minimum applies to you from 6 April 2028.
3. 💸 The 25% charge nobody warns you about
If a transfer is on the table for you, read this section before speaking to anyone.
If you decide to transfer your pension abroad, it must go to a QROPS. HMRC publishes and updates the list of qualifying schemes, but being on the list does not guarantee a tax-free transfer.
The Overseas Transfer Charge (OTC) is 25% of the transfer value. It applies unless one of these exemptions is met:
You live in the same country as the QROPS scheme at the time of transfer
The scheme is provided by your employer
The transfer is within the Overseas Transfer Allowance of £1,073,100
The EEA exemption is gone. From 30 October 2024, transfers to QROPS based anywhere in the EEA or Gibraltar lost their blanket exemption. Before that date, you could transfer to a Malta or Gibraltar scheme regardless of where you lived and pay no OTC. That no longer applies. If you are planning a move to Europe, the rules are now more restrictive than older adviser guidance may reflect.
The 5-year rule: Transfer to a QROPS and then move to a different country within 5 years, and the OTC may apply retroactively. The clock starts from the date of transfer. Moving countries does not reset it.
One more scenario: if the receiving scheme is not a QROPS at all, HMRC treats it as an unauthorised payment and applies a 40% charge. That is a separate and larger liability than the OTC.
Next Step: Do not contact a QROPS provider or sign anything before taking FCA-regulated advice. A pension transfer is permanent. The cost of getting it wrong starts at 25% of your pot and cannot be undone.
4. 🌍 How your pension income is taxed once you are abroad
UK pension income from a registered UK scheme is subject to UK income tax by default. HMRC deducts it at source. Simply moving abroad does not stop this applying automatically.
Double taxation agreements (DTAs) change this. The UK has over 130 active DTAs. Many give primary taxing rights to your country of residence once you are non-resident, meaning UK tax should not apply to your pension. But you have to claim it:
Check whether your destination country has a DTA with the UK that covers pension income at gov.uk/government/collections/tax-treaties
Apply using form DT-Individual to receive your pension gross (no UK tax deducted at source)
If UK tax has already been deducted before you apply, reclaim it via form R43
The 25% tax-free lump sum (PCLS): This has a lifetime cap of £268,275 for 2026/27. It is tax-free in the UK. Your destination country may treat it as taxable income under its own domestic rules, regardless of what the DTA says about regular pension income. Check this before you draw, not after.
The temporary non-residence trap: If you are abroad for fewer than 5 full UK tax years and then return to the UK, pension income drawn during that period may be treated as taxable UK income in the year you come back. This catches people who plan a 2 to 3 year move, draw pension income while abroad, and then return.
Next Step: Find your country's DTA and look for the pension article. It will tell you exactly which country has the right to tax your pension income. Download form DT-Individual from GOV.UK to apply for gross payment.
5. 📋 What to ask the specialist before you touch anything
One hour with the right adviser, before you make any decision that cannot be reversed, is the most valuable thing in this edition.
Who to see:
Experts for Expats: matches readers with FCA-regulated advisers specialising in UK expat pension planning. Free 15-minute discovery call to confirm the fit before you commit.
Global Tax Consulting: for multi-jurisdiction situations where pension mechanics and cross-border tax overlap.
Currencies Direct / OFX: for large transfers that will involve currency conversion.
Walk in with these questions:
Should my pension stay in a SIPP, or is there a specific reason to consider a QROPS given where I am moving and how long I plan to stay?
What is the most tax-efficient way to draw pension income from my destination country, given the double taxation agreement?
Should I draw any pension benefit before I leave the UK, or wait until I am non-resident?
How does the PCLS (25% lump sum) interact with my destination country's tax treatment?
If I come back to the UK, what are the implications of pension income I drew while abroad?
How does my pension fit into my estate and inheritance planning across two countries?
Common mistakes to avoid:
Don't assume moving abroad automatically affects your pension. A UK SIPP stays exactly where it is.
Don't assume UK income tax continues to apply once you're non-resident. Check your DTA and claim gross payment via form DT-Individual.
Don't trigger flexible access before understanding the MPAA. Once done, the £10,000 annual contribution limit applies permanently and cannot be undone.
Don't contact a QROPS provider or sign anything before taking regulated advice. Pension transfers are permanent and the cost of getting it wrong starts at 25%.
Don't rely on older adviser guidance about EEA exemptions. The blanket exemption was removed on 30 October 2024.
Next Step: Book this meeting before you leave the UK, not after. Pension decisions made while you are still UK-resident are considerably easier to implement cleanly.
Official Resources 📎
WHAT WE’RE WATCHING
The Constant Gardener
Moving abroad rarely means leaving your old life behind entirely. Based on John le Carré's acclaimed novel, The Constant Gardener follows a British diplomat in Kenya whose search for the truth after his wife's murder uncovers a web of corruption that stretches far beyond the country he now calls home.
It's an intelligent thriller first and foremost, but also a reminder that living overseas often means navigating more than one system, more than one set of rules, and more than one version of home.
Watch on Prime Video. The novel is available from Amazon or Waterstones.
DISCLAIMER
This newsletter provides general information only and does not constitute legal, tax, or immigration advice. Visa requirements and tax rules change frequently. Always verify current requirements with official government sources and consult qualified professionals for advice specific to your situation.