Are you paying too much for your QROPS? If you’re living in the UK again or planning to return, it might be time to rethink your pension strategy. At Cameron James, we’ve helped hundreds of clients transfer their QROPS back to the UK, often saving them thousands in fees.
In this article, our CEO and Independent Financial Adviser, Dominic James Murray, explains how a transfer could benefit you and what to watch out for.
If you are interested in more straightforward explanations on pensions and retirement planning, visit our YouTube channel.
Why Would You Transfer QROPS Back to UK?
Many people were advised to open a QROPS simply because they lived abroad. Between 2010 and 2020, QROPS were seen as the default option for expats in countries like France, Spain, the US, or the UAE.
Back then, the assumption was: “Living overseas? You need a QROPS.”
But times have changed, and the reasons for holding one may no longer apply, especially if you've returned to the UK or plan to.
What Changed? The UK Lifetime Allowance
The UK abolished the Lifetime Allowance (LTA) in April 2024. Previously, pension pots over £1.073M faced tax penalties. With the LTA gone, there’s now more flexibility to grow your pension without tax restrictions.
This change has removed one of the main incentives for using QROPS. In many cases, transferring your QROPS back to the UK now makes financial sense.
QROPS vs UK SIPP: The Cost Difference
QROPS fees are often high. Most charge around £800 to £900 per year for pension pots over £100,000. In contrast, UK SIPPs typically cost £100 to £200 plus VAT, or sometimes nothing at all.
Over ten years, that difference could mean £6,000 to £7,000 in savings, money that should be working for your retirement, not paying your provider.
If you’ve returned to the UK, switching to a low-cost SIPP with providers like AJ Bell could be a smart move. For expats, FCA-regulated International SIPPs offer similar flexibility but with lower annual fees than many QROPS.
Real QROPS Case Study: What Can Go Wrong
We recently heard from a client with a £50,000 QROPS pension. The portfolio had lost 30% in value. Worse still, it was locked into an 8-year term with heavy exit penalties.
This setup wasn’t just expensive, it was toxic. It had been sold by a commission-driven adviser, leaving the client trapped. The fund and platform both charged exit penalties, making it extremely costly to leave.
It’s vital to understand what’s inside your QROPS. Transfers are complex, especially when the underlying assets are illiquid or tied to structured products.
Why Some SIPP Providers Reject QROPS Transfers
Many UK SIPP providers won’t accept QROPS transfers. Why? Because QROPS pensions can hold complex or frozen assets like structured notes, which most UK providers avoid.
However, International SIPP providers are usually more flexible. They understand QROPS structures and are open to accepting a broader range of assets. Many of their directors have even worked at QROPS firms themselves.
Should You Transfer Your QROPS Back to the UK?
If your QROPS fees are high or your investment performance is poor, it’s worth exploring a transfer. The cost savings can be substantial, especially now that the Lifetime Allowance has been abolished.
But every situation is different. Before making any changes, you should speak to a qualified financial adviser who can assess your personal circumstances.
Speak to a QROPS Specialist Today
At Cameron James, our expert IFAs specialise in UK pension transfers, including QROPS to UK SIPP. We offer clear, transparent advice tailored to your goals.
📅 Book your free consultation today. Find out if transferring your QROPS back to the UK could help you save money and improve your retirement outlook.