Start with scheme availability
The GOV.UK ROPS notification list published 15 September 2026 includes Indian schemes (checked 26 September 2026). Tax analysis cannot turn an unverified India product into an eligible receiving scheme.
The 25% Overseas Transfer Charge
The Overseas Transfer Charge may apply unless a statutory exemption is met. Residence, scheme location, transfer date and later changes can affect the result. Do not assume the charge is avoided because a proposed scheme appears on a list or is in the member’s country of residence.
Unauthorised-payment charges
An unauthorised payment is generally charged at 40%. A further 15% surcharge applies only where the statutory surcharge conditions are met. Live-list status and every transaction condition must be checked; list inclusion is notification only, not HMRC approval or a tax guarantee.
UK-India treaty and Indian tax
The UK-India treaty may provide relief from double taxation, but the taxing country, withholding, credit process and final liability depend on residence, payment type and individual facts. Obtain advice on the actual scheme and payment; do not assume tax-free lump sums, a particular TDS rate or automatic treaty relief.
Reporting
UK and Indian reporting obligations depend on the transfer, residence and assets held. Confirm current return disclosures and any scheme-administrator reporting with appropriately qualified advisers.
Inheritance tax from 6 April 2027
Most unused pension funds enter the UK IHT estate calculation for deaths on or after 6 April 2027. Exemptions, bands, the whole estate and long-term UK residence determine the result. A non-UK pension or QROPS is not automatic IHT avoidance.
Before acting
- Verify the exact scheme on the live GOV.UK notification list.
- Confirm whether the 25% charge or unauthorised-payment rules could apply.
- Obtain scheme-specific UK and Indian tax advice.
- For safeguarded benefits over £30,000, obtain advice from an appropriately regulated adviser.
