HELPLINE: 
QROPS is out – but did you know there is an even better way to invest in your retirement? Discover how the ISIPP and NT code combo can maximise your pension.
After 18 years, QROPS (Qualifying Recognised Overseas Pension Scheme) is no longer the go-to solution for expatriates looking to transfer their UK pensions. Aside from those who started transfers before 30 October, 2024 and complete by 5 April, 2025, QROPS is no longer viable due to its hefty 25% Overseas Transfer Charge (OTC).
Who wants to invest, but lose 25% of their pension before the policy even starts? This new, stark reality has many UK expats in France seeking a more flexible, cost-effective option.
At DTB Wealth Management, we have prepared an alternative solution based around the International Self-Invested Personal Pension (ISIPP), a tax-efficient pension designed specifically for non-UK taxpayers.
“The ISIPP offers significant advantages over QROPS,” said Daniel Butcher, a UK/France finance specialist and founder of DTB Wealth Management. “It avoids the 25% OTC, allowing retirees to preserve more of their hard-earned pensions, provides access to diverse investments and supports multiple currencies, making it ideal for Eurozone residents.”
One standout feature of the ISIPP is the NT (Non-Tax) code. By applying this, expats can bypass the automatic 45% UK withholding tax on withdrawals.
While it’s possible to reclaim this tax if the country of residence has a Double Taxation Agreement (DTA) with the UK – which France has – the process can take over a year.
“An NT code avoids that long wait and stress making pension planning and life in France easier for our clients,” said Daniel.
ISIPPs bring flexibility and choice to the Eurozone investor and are: multi-currency, so you can keep your money in the ISIPP in euros; free of tax (data?) when moving from a UK pension to an ISIPP; free of the OTC (Overseas Tax Charge), unlike QROPS; diverse – you can choose the custodian or platform of your choice in many jurisdictions; and versatile with flexi-access available from age 55+.
“ISIPPs avoid the downsides that now come with QROPS and partnered with the NT code are an excellent option,” added Daniel. “Catering to expats with at least £75,000 to transfer, they offer a secure solution for those seeking long-term financial security.”
Don’t pick the wrong pension plan. For more information on ISIPP and NT codes, contact DTB Wealth Management to understand how these tools can secure your future financial freedom.
