What happens to my SIPP if I leave the UK?

Whether you’re moving abroad for work, personal or family reasons, your to-do list might feel like it’s as long as the flight journey to your new home. 

One of the practical things to sort before you go is your pension. Having a Self-Invested Personal Pension (SIPP), you may wonder what happens to it when you leave the UK. A SIPP is designed to give you flexibility and control, and that doesn’t stop when you leave the UK. With the right steps and a bit of planning, your SIPP can continue to support your retirement goals, wherever you’re based.

Yes, you can keep your SIPP even if you move abroad. Becoming a non-UK resident doesn’t necessarily mean you have to close your SIPP or stop investing. Your account can stay open and continue to grow, just as it would if you were still living in the UK.

However, it’s important to know that your SIPP will still follow UK pension rules. That means things like tax relief, contribution limits, and withdrawal options will be based on UK regulations, no matter where you live. ^{Footnote [1]}  

If you do move overseas, you must let your SIPP provider know, as they may also have their own rules. They need to update your residency status to make sure everything stays compliant, and your account runs smoothly.

Since most SIPP providers offer online platforms, like MyAviva, you can manage your pension from anywhere in the world. You’ll still be able to check your balance, make investment choices, and keep track of your retirement savings, all from abroad.

If you move abroad, you don’t have to close your SIPP. It can stay open and invested, even if you’re no longer living in the UK.

Your SIPP will still follow UK pension rules. That means how you access your money, the limits on contributions, and how tax relief works will still be based on UK law, even if you live somewhere else. ^{Footnote [1]} Your provider might have their own rules, too. These could limit the types of investments you can make and may require that payments go into, and possibly come out of, a UK bank account.

You’ll need to tell your SIPP provider that you’ve changed your residency. This helps them keep your account up to date and make sure everything stays within the rules. You can usually have your pension income paid into either a UK or international bank account. Most providers offer this flexibility, but it’s worth checking with yours to be sure.

It’s also important to know that tax treatment may change depending on where you live. The UK has agreements with some countries to avoid taxing the same income twice. ^{Footnote [2]} But not all countries have these agreements, so it’s important to understand both UK rules and the tax laws in your new country.

Knowing the rules in both places can help you manage your pension smoothly and avoid any surprises.

Which countries do we have double taxation agreements with? 

The UK has signed double taxation agreements (DTAs) with over 130 countries. These agreements are made to prevent individuals from being taxed twice on the same income, once in the UK and once in the country where they live. ^{Footnote [2]} You can find the full list of countries and the relevant treaty texts on HMRC’s international manual.

Some examples of countries with active DTAs include:

• Australia
• Canada
• France
• Germany
• India
• Ireland
• Japan
• New Zealand
• South Africa
• Spain
• United States

These agreements are a bit different from country to country, but many of them explain how your pension should be taxed if you’re living outside the UK.

What about my SIPP in a country without a double taxation agreement? 

If you move to a country without a DTA with the UK, your pension income may be taxed both in the UK and in your new country of residence. This could result in double taxation, unless local tax relief is available. 

Unfortunately, GOV.UK doesn’t publish a specific list of countries without a DTA. However, if a country isn’t listed in the HMRC manual or on the GOV.UK tax treaties page, it likely doesn’t have a DTA with the UK.

If you’re planning to move abroad, it’s a good idea to:

• Check GOV.UK to see if your destination country has a DTA with the UK.
• Speak to your SIPP provider about how your pension income will be handled.
• Get local tax advice to understand how your pension will be taxed in your new country.

Yes, you might still be able to contribute to your SIPP after moving abroad, but there are some rules to be aware of. It’s a good idea to check with your provider, too. They may have their own rules about accepting contributions from people living overseas or from bank accounts outside the UK.

If you’re no longer a UK resident, you can usually keep paying into your SIPP for up to five tax years after the tax year in which you left the UK. This is known as the “five-year rule”. During this time, you may still get UK tax relief on your contributions, so long as you meet the conditions.

You'll need to talk to your provider before moving. Some providers, like us, only accept contributions into their SIPPs from UK residents.  And if you can contribute while living overseas, your contributions may have to come from a UK bank account.

What are the conditions for tax relief while overseas?

1. You have relevant UK earnings – this includes income from UK employment or self-employment. But it's worth noting that although you may have other income that’s taxable in the UK, that doesn’t mean you automatically qualify for tax relief on pension contributions. ^{Footnote [1]}
2. You’re within the five year rule – HMRC allows non-residents to continue receiving tax relief for up to five tax years after the tax year in which they became non-UK resident, as long as they were a UK resident before. If you don't have any relevant UK earnings, the limit is £3,600 after tax relief, so you pay in £2,880.
3. Your pension scheme uses “relief at source” – personal pensions and SIPPs work this way. The provider claims basic rate tax relief from HMRC and adds it to your pension pot. You don’t need to do anything extra, but your provider must be registered with HMRC to offer this.
4. You’re not exceeding your annual allowance – the standard annual allowance is £60,000 (as of 2025), but it may be lower if you’ve already accessed your pension or have a high income. Contributions above this limit won’t receive tax relief. This means that if you earn a high income, your pension tax relief might be reduced. ^{Footnote [3]} This happens through something called the “tapered annual allowance.” It starts to apply if your total income is over £200,000 and goes above £260,000 once things like pension contributions are added in. ^{Footnote [3]} For every £2 you earn over £260,000, your allowance goes down by £1. ^{Footnote [3]}The lowest it can go is £10,000. That means if you’re a high earner, you may not get tax relief on as much of your pension contributions as someone earning less.

So, let’s say Paul earns £300,000 in a tax year. That’s above both the £200,000 threshold income and the £260,000 adjusted income. Because Paul is £40,000 over the £260,000 adjusted income limit, their annual allowance is reduced:

• For every £2 over the limit, the allowance drops by £1.
• £40,000 ÷ 2 = £20,000 reduction.

This means that instead of the standard £60,000 annual allowance, Paul’s allowance is now £40,000. If Paul contributes more than £40,000 to their pension that year, he won’t get tax relief on the extra amount. To learn more, check out our article on ‘pension tapered annual allowance’.

If you've taken certain kinds of "flexible benefits", which the law defines as UFPLS and flexi-access drawdown, you'll be subject to the Money Purchase Annual Allowance (MPAA). This means that you can only contribute £10,000 in any tax year (including basic rate tax relief) into a SIPP, personal pension or any other money purchase scheme.

To learn more about the MPAA, check out our article

After the five-year period, you may still be able to contribute, but you won’t usually get UK tax relief unless you have UK-relevant earnings (like income from a UK job or business).

Living abroad doesn’t mean your SIPP is free from UK tax rules. If you take money out of your pension, it may still count as UK income, even if you’re no longer a UK resident.

Whether or not you pay UK tax on those withdrawals depends on where you live and whether the UK has a double taxation agreement (DTA) with that country. These agreements are meant to stop you being taxed twice on the same income. If one applies, you might be able to claim back UK tax or avoid paying it altogether.

To do that, you’ll usually need to fill out a form called DT-Individual and it helps HMRC confirm that you live abroad and qualify for tax relief under the agreement. You’ll also need to show proof of residency, usually from your local tax authority.

It's also worth noting that your provider will need to apply the PAYE regulations to any drawdown or other taxable payments. This means that they can only pay your income without deducting UK tax if HMRC has sent them the right tax code. This should normally happen once HMRC accepts your form and sets up a record for your pension income. But your first payment will still be subject to tax.

Even if the UK doesn’t tax your pension income, your new country might. That’s why it’s important to check the local tax rules where you live. Every country treats foreign pensions differently, and some may tax your withdrawals even if the UK doesn’t.

It’s worth remembering that tax rules can be complex and vary from person to person. It may be worth speaking to a qualified financial adviser to understand how the rules apply to you. You can find one at unbiased.co.uk or through our Aviva Financial Advice, which offers personalised support if you have pension or investment savings of £150,000 or more. You may also need to take tax advice in your new country of residence, to understand their treatment of your UK pension income.

If you’re thinking about moving your Self-Invested Personal Pension (SIPP) abroad, one option is to transfer it to a Qualifying Recognised Overseas Pension Scheme (QROPS). These are overseas pension schemes that meet certain rules set by HMRC.

These rules are designed to make sure the scheme:^{Footnote [4]}

• is regulated in the country where it’s based.
• follows similar standards to UK pension schemes, especially around how and when you can access your money.
• doesn’t allow early access to pension savings before age 55 (except in special cases like ill health).
• provides information to HMRC when requested, including details about transfers and withdrawals.

HMRC keeps a list of schemes that meet these conditions, but being on the list doesn’t guarantee that a scheme is fully compliant. That’s why it’s important to get advice before transferring.

These rules help protect your pension savings and make sure the transfer follows UK tax laws. If a scheme doesn’t meet the conditions, the transfer could be taxed, and you might lose some of your savings.

What are some of the benefits of transferring to a QROPS?

It’s important to understand both the benefits and limitations of QROPS before making any significant financial decisions about your SIPP when living abroad.

Some benefits are that they:

1. keep your pension closer to home – if you live overseas, having your pension in the same country can make things simpler. You won’t need to deal with currency exchange or international banking every time you access your money.
   
2. may have more flexibility with investments – some QROPS offer a wider range of investment options. This might give you more control over how your money is managed, depending on the scheme and local rules. QROPS, depending on the jurisdiction and provider, may offer:
   ·         Access to international funds and asset classes not typically available in UK pensions.
   ·         Greater freedom in choosing how and where your pension is invested.
   ·         Localised investment strategies that align with the tax and regulatory environment of your country of residence.
   
   However, this flexibility depends heavily on the rules of the QROPS provider and the country it’s based in. Not all QROPS offer broader options, and some may have stricter controls than UK SIPPs.
3. they may have local tax advantages – depending on where you live, a QROPS might offer tax benefits that aren’t available with a UK pension. Some countries don’t tax pension income in the same way the UK does. But this depends on local laws and whether the UK has a double taxation agreement with that country.
4. could give you currency choice – with a QROPS, you may be able to hold and withdraw your pension in your local currency. This can help avoid exchange rate fees and make budgeting easier.

Not all QROPS are the same, and transferring your pension is a big decision. There may be risks, like losing UK protections or facing unexpected charges. That’s why it’s important to speak to a regulated financial adviser before making any moves.

What are some of the limitations of transferring to a QROPS?

Transferring your UK pension to a QROPS might sound like a good idea, especially if you live abroad. But it’s not always straightforward. Here are some things to watch out for:

1. You could lose UK protections – UK pensions come with certain safeguards, like rules around how your money is accessed and protections for your beneficiaries. Some QROPS may not offer the same level of security or oversight, depending on the country and provider.
2. You might face an overseas transfer charge – If the transfer doesn’t meet HMRC’s conditions, you could be hit with an overseas transfer charge of 25% of the amount moved. ^{Footnote [4]} According to HMRC rules, the charge applies if: ^{Footnote [4]} 
   ·         You’re not a tax resident in the same country where the QROPS is based.
   ·         You move to a different country within five years of the transfer and that country doesn’t meet the exemption rules.
   
   These rules are there to stop people from moving their pension overseas just to avoid paying UK tax. If the transfer doesn’t meet HMRC’s conditions, you could be charged 25% of the amount you move, which can have a substantial impact on your savings.
3. Not all QROPS are equal— just because a scheme is listed by HMRC doesn’t mean it’s fully compliant or suitable for your needs. Some may have limited investment options, high fees, or rules that don’t match your retirement plans.
4. Local rules can be tricky – Each country has its own tax laws and pension rules. What works well in one place might not work in another. You could end up paying more tax or facing restrictions you didn’t expect.

Because the risks can be high, it’s important to speak to a regulated financial adviser before making any decisions. They can help you understand the pros and cons and make sure the transfer is right for you.

If you’ve moved overseas or are planning to, you can still manage your SIPP online. Most providers offer secure platforms that let you check your balance, switch funds, and update your investment choices from anywhere in the world.

Living abroad doesn’t mean you lose control. You can adjust your portfolio to match your goals, whether that’s growth, income, or a mix of both. This flexibility is one of the key benefits of a SIPP.

However, there are a few things to keep in mind if you're no longer a UK resident. Some investment options might be limited, and you may face extra checks when making changes. It’s also important to understand how your new country’s tax rules affect your pension. Currency changes can also impact the value of your investments, so reviewing your strategy regularly is a smart move.

Always check with your provider and consider speaking to a financial adviser who understands cross-border pensions. That way, you can make informed decisions and keep your retirement plans on track.

When you’re living abroad and drawing from your SIPP, currency matters more than you might think. If your pension is in pounds, but your expenses are in another currency, you’ll need to convert your withdrawals. This conversion can affect how much money you receive, depending on the exchange rate at the time.

Exchange rates can go up and down, sometimes quickly. This means the value of your pension income could change from month to month. For example, if the pound weakens against your local currency, your withdrawals might not stretch as far. On the flip side, a stronger pound could give you more spending power.

To help manage this, some people use multi-currency accounts. These let you hold and convert money when the rates are more favourable. Others explore hedging strategies, which are tools designed to reduce the risk of currency swings. These options can add a layer of protection, but they may come with extra costs or complexity.

Here are a few tips to keep in mind:

1. Plan ahead – think about how currency changes could affect your income over time.
2. Review regularly – keep an eye on exchange rates and adjust your strategy if needed.
3. Get advice – a financial adviser can help you decide if tools like hedging or multi-currency accounts are right for you.

It’s important to think about how different currencies affect your money, especially if you live in one country but your pension is in another.

If you’re planning to live abroad, it’s important to tell your pension provider and HM Revenue & Customs (HMRC) about your move. This helps make sure your pension is handled correctly and that you’re paying the right amount of tax.

Start by updating your address and residency status with your pension provider. They need this information to keep your account in good order and to follow UK pension rules. If they don’t know you’ve moved, it could lead to delays or mistakes with your payments.

You’ll need to let HMRC know you’re no longer living in the UK  by filling out a form called the P85, which tells HMRC you’ve left the country. This helps them apply the correct tax treatment to your pension income. If you’re still getting money from the UK, you might also need to register for Self Assessment.

Self Assessment is a way to tell HMRC about your income and pay any tax you owe. Most people in the UK have their tax taken automatically from wages or pensions, but if you live abroad and still get money from the UK, you might need to report it yourself.

You do this by filling in a tax return each year. It shows how much you earned, what tax you’ve already paid, and what you might still owe. You can do it online or by post, and HMRC uses the information to work out your final tax bill.

It’s important to keep good records and submit your return on time to avoid penalties. If you’re not sure whether you need to use Self Assessment, use the HMRC’s tool to check.

To make these updates, you may be asked for:

• Proof of your new address (like a utility bill or rental agreement)
• Your National Insurance number
• Details about your income and pension

Keeping clear and accurate records is key. It helps avoid tax problems and makes sure your pension continues to work smoothly while you’re abroad.

Before making any big decisions about your pension, like transferring to a QROPS or taking out a large lump sum, it’s important to speak to a regulated financial adviser. These choices can affect your tax, your long-term income, and even your access to pension protections, so getting expert advice helps you avoid costly mistakes.

Financial advice is especially useful when:

• you’re thinking about transferring your pension abroad.
• you want to take out a large amount from your pension.
• you’re unsure how your pension fits with your overall retirement plan.

If you live outside the UK, it’s a good idea to speak to a cross-border or expat financial adviser. They understand both UK pension rules and the laws in your new country, which helps you make decisions that work in both places.

“When it comes to pensions,” says Alistair, “the right advice at the right time can make all the difference. Whether you’re staying in the UK or moving abroad, speaking to a regulated adviser helps you protect your savings and plan with confidence.”

You can also get free impartial guidance through MoneyHelper’s Pension Wise, which is a government-backed service that helps you understand your options before you retire.