PTM102600 - Transfers: transfers to a QROPS: when an overseas transfer charge may be repaid
Source: gov.uk (2025-08-12)


Glossary

PTM000001 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm000001)

An overseas transfer charge can become repayable in two broad situations:
- the overseas transfer charge was paid in error.
- the overseas transfer charge was due and has now become repayable due to a change in circumstances.
Repayment of tax paid in error (#error)Repayment due to a change of circumstances (#change)How to claim a repayment due to a change of circumstances (#how)Claims from the scheme administrator (#claim-admin)Claims from the scheme manager (#manager)Claims from the member (#claim-member)Repayment claims when the original registered pension scheme no longer exists or has merged (#rps-merged)Repayment claims when the original QROPS no longer exists or has merged (#qrops-merged)

Repayment of tax paid in error

Section 33 and Schedule 1AB Taxes Management Act 1970

A scheme administrator, scheme manager or member may have paid the overseas transfer charge in error to HMRC. This could be due to the scheme administrator or scheme manager incorrectly calculating the amount of tax due. For example, a transfer is subject to the overseas transfer charge and the amount due is £100,000, but £110,000 is paid to HMRC. In this example £10,000 has been paid in error and may be reclaimed from HMRC.

Alternatively the scheme administrator or scheme manager may have incorrectly identified the transfer as being subject to the overseas transfer charge. In this situation all of the tax charge has been paid in error and may be reclaimed from HMRC.

Where tax has been paid in error it is the person that paid the tax that can claim the overpaid tax back from HMRC. HMRC will repay the overpaid tax only to the person who originally paid the tax in error.

Payment in error by scheme administrator

The scheme administrator should reclaim the overpaid tax using form APSS242 available from gov.uk. After reviewing this information HMRC will repay any overpaid overseas transfer charge where they consider a repayment is due.

Any repayments are not, and cannot be treated as, contributions to the registered pension scheme. The repayment should be used to provide the member with benefits or a transfer in accordance with the rules of the registered pension scheme.

Payment in error by scheme manager

The scheme manager should reclaim the overpaid tax using form APSS243 available from gov.uk. After reviewing this information HMRC will repay any overpaid overseas transfer charge where they consider a repayment is due.

The repayment should be attributed back to the ring-fenced transfer fund from which the payment originated and be used to provide the member with benefits or a transfer in accordance with the rules of the overseas pension scheme.

Payment in error by the member

If the overseas transfer charge was paid in error by the member they should reclaim the overpaid tax from HMRC. The member should have reported liability to the overseas transfer charge on their tax return. The member should amend their tax return to show the correct amount of tax due and claim a refund in accordance with https://www.gov.uk/claim-tax-refund/you-fill-in-a-self-assessment-tax-return.

Any tax paid by the member should have been paid from their own personal funds and not from pension scheme funds. As such a repayment to the member can be used as they wish. This may include using the money to make a contribution to a registered pension scheme.

Repayment due to a change of circumstances

Section 244M Finance Act 2004

A repayment of an overseas transfer charge under section 244AC may arise because of a change of circumstances that occurs in the relevant period (see PTM102200 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm102200) for the meaning of relevant period). The test is, if the circumstances had existed at the time of transfer (that was subject to the charge), would the transfer have been excluded from the overseas transfer charge. It is important to note an overseas transfer charge that arises under section 244IA cannot become repayable due to a change of circumstances.

A repayment on a change of circumstances may occur in the following situations:
- the transfer was subject to the overseas transfer charge under section 244AC only because the member failed to provide the scheme administrator or scheme manager with the required information before the transfer (see PTM102900 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm102900)) and the member has now provided that information.
- the member has changed their country of residence and so now meets the exclusion conditions of section 244B (member and scheme resident in the same country), or (for transfers requested before 30 October 2024 and completed before 30 April 2025 only) section 244C (member resident in UK, Gibraltar or EEA and scheme resident in the EEA or Gibraltar); PTM102300 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm102300) provides full details on these exclusion conditions.
- the QROPS is an occupational pension scheme, set up by an international organisation, or an overseas public service scheme, when the transfer was made the individual was not employed by a scheme employer, and they are now an employee of a scheme employer. See PTM102300 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm102300) for full details of how these exclusion conditions can be met.
- sums and assets representing the transfer that was subject to the overseas transfer charge have been transferred to another QROPS and that transfer is excluded from the tax charge.
Section 244M(3) Finance Act 2004

The right to a repayment due to a change in circumstances does not cancel the previous tax charge. The overseas transfer charge remains due on the transfer. If the overseas transfer charge was not paid when due, late payment penalties and interest will apply. The repayment of the tax charge does not cancel out any late payment penalties and interest.

Section 244M(5) Finance Act 2004

Any repayment made due to a change of circumstances is not a relievable pension contribution. A payment to the scheme administrator or scheme manager should be used to provide the member with benefits or a transfer in accordance with the rules of the pension scheme.

How to claim a repayment due to a change of circumstances

HMRC will repay the overseas transfer charge only to the person that paid the tax charge to HMRC.

Where the tax charge has been paid from pension scheme funds by the scheme administrator of the registered pension scheme or (former) QROPS scheme manager, HMRC will not repay the tax charge to the member. As the tax was paid from pension scheme funds it should return to a pension scheme.

HMRC will make a repayment only after they receive a claim from the relevant taxpayer.

Section 244M(4) Finance Act 2004

A repayment to the scheme administrator is conditional on the scheme administrator having reported the transfer to HMRC in accordance with PTM103050 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm103050).

A repayment to the scheme manager is conditional on the scheme manager having reported the transfer to HMRC in accordance with PTM112700 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm112700).

Amount of repayment

Section 244M(2) Finance Act 2004

HMRC will repay only the amount of tax that was actually paid to them.

For example, if the amount of overseas transfer charge due on a transfer was £25,000, but only £20,000 was actually paid, HMRC will repay only £20,000. In addition, because the overseas transfer charge was due, and continues to be due, HMRC can pursue the relevant taxpayers for interest and late payment penalties on the unpaid tax (in this example £5,000).

Claims from the scheme administrator

Regulation 14 The Registered Pension Schemes (Accounting and Assessment) Regulations 2005 – SI 2005/3454

Regulation 3 The Pension Schemes (Information Requirements – Repayment of Overseas Transfer Charge) Regulations – SI 2019/774

The scheme administrator must make a repayment claim within 60 days of them becoming aware that a repayment is due.

The claim must be made in writing using form APSS242 and include the following information:
- the member's name, date of birth and principal residential address
- the member’s National Insurance number (“NINO”) or a statement that the member does not have a NINO (unless the member is under the age of 16 or a citizen of a country outside the United Kingdom who is not resident in the United Kingdom)
- the date of the transfer
- if the overseas transfer charge arose due to a change in circumstances after the transfer, the date of the event causing the charge to arise
- the date on which the scheme administrator paid the charge on the transfer
- the amount of the transfer
- why the charge on the transfer has now become repayable and the date on which this change of circumstances arose
- the amount of repayment being claimed
- a declaration that the information supplied is true and complete to the best of the claimant’s knowledge and belief.
Regulations 12A(3) and 14ZCA(4) to (6) The Registered Pension Schemes (Provision of Information) Regulations 2006 - SI 2006/567

When HMRC makes a repayment, the scheme administrator must:
- tell the scheme manager of the QROPS that received the transfer about the repayment within 31 days of HMRC making the repayment, and
- tell the member about the repayment within 90 days of that repayment.
Go to PTM103050 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm103050) for details of both these reporting requirements.

Claims from the scheme manager

Regulation 3AL The Pension Schemes (Information Requirements for Qualifying Overseas Pension Schemes, Qualifying Recognised Overseas Pension Schemes and Corresponding Relief) Regulations 2006 – SI 2006/208

Regulation 3 The Pension Schemes (Information Requirements – Repayment of Overseas Transfer Charge) Regulations – SI 2019/774

The scheme manager can make a repayment claim up to 12 months after the end of the relevant period for the transfer (see PTM102200 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm102200)).

The claim must be made in writing using form APSS243 and include the following information:
- the member's name, date of birth and principal residential address
- the member’s National Insurance number (“NINO”) or a statement that the member does not have a NINO (unless the member is under the age of 16 or a citizen of a country outside the United Kingdom who is not resident in the United Kingdom)
- the date of the transfer
- if the overseas transfer charge arose due to a change in circumstances after the transfer, the date of the event causing the charge to arise
- the date on which the scheme manager paid the charge on the transfer
- why the charge on the transfer has now become repayable and the date on which this change of circumstances arose
- the amount of repayment being claimed
- a declaration that the information supplied is true and complete to the best of the claimant’s knowledge and belief.
Claims from the member

Regulation 3 The Pension Schemes (Information Requirements – Repayment of Overseas Transfer Charge) Regulations – SI 2019/774

As explained above, the member can only make claim for repayment of the overseas transfer charge if it was the member themselves that originally paid the tax from their own resources. The member can make a repayment claim up to 12 months after the end of the relevant period for the transfer (see PTM102200 (https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm102200)).

The claim must be made in writing and include the following:
- the member's name, date of birth and principal residential address
- the member’s National Insurance number (“NINO”) or a statement that the member does not have a NINO (unless the member is under the age of 16 or a citizen of a country outside the United Kingdom who is not resident in the United Kingdom)
- the date of the transfer
- if the overseas transfer charge arose due to a change in circumstances after the transfer, the date of the event causing the charge to arise
- the date on which the scheme administrator accounted for the charge on the transfer
- the amount of the transfer
- the date the claimant paid the charge to HMRC
- why the charge on the transfer has now become repayable and the date on which this change of circumstances arose
- the amount of repayment being claimed
- a declaration that the information supplied is true and complete to the best of the claimant’s knowledge and belief.
Repayment claims when the original registered pension scheme no longer exists or has merged

Regulation 6(3)-(4) The Pension Schemes (Information Requirements – Repayment of Overseas Transfer Charge) Regulations 2019 – SI 2019/774

Where the overseas transfer charge was paid by the scheme administrator of a registered pension scheme, and that scheme:
- no longer exists, or
- no longer meets the criteria to be a registered pension scheme
the member must provide to HMRC details of another registered pension scheme and the scheme administrator of that scheme must make the claim for repayment as set out above.

Regulation 6(5) The Pension Schemes (Information Requirements – Repayment of Overseas Transfer Charge) Regulations 2019 – SI 2019/774

Where the overseas transfer charge was paid by the scheme administrator of a registered pension scheme and that scheme has since merged with another registered pension scheme:
- the repayment of the overseas transfer charge must be made to the scheme administrator of that merged registered pension scheme, and
- the scheme administrator of that merged pension registered pension scheme must make the claim for repayment of the charge as set out above.
Repayment claims when the original QROPS no longer exists or has merged

Regulation 6(6)-(7) The Pension Schemes (Information Requirements – Repayment of Overseas Transfer Charge) Regulations 2019 – SI 2019/774

Where the overseas transfer charge was paid by the scheme manager of a QROPS and that QROPS:
- has ceased to exist
- is no longer a QROPS, or
- has merged with another QROPS
the member must provide to HMRC details of a registered pension scheme and the scheme administrator of that scheme must make the claim for repayment as set out above.