Termination of UK's reciprocal agreements on transfers of pension rights

HMRC has terminated its existing reciprocal agreements with the Republic of Ireland, Jersey, Guernsey and the Isle of Man (IoM) for the transfer of pension rights with effect from 6 April 2006.
From 6 April 2006, when the simplified pension scheme tax regime is introduced, overseas transfers to these four countries will not be subject to HMRC discretion, and individuals will not have to meet any conditions as is the case under the current tax rules and the reciprocal agreements. The new rules will make it easier to make transfers than the existing bilateral arrangements and all parties to the agreements have therefore agreed that they should be terminated.

Guidance on the new overseas transfer rules is provided in Part 14 of the Registered Pension Schemes Manual which is available on the HMRC internet site. This guidance will be amended to take account of some recent changes to draft regulations before they were laid. "The Pension Schemes (Categories of Country and Requirements for Overseas Pension Schemes and Recognised Overseas Pension Schemes) Regulations 2006" (SI 2006 No. 206) are also available on the HMRC internet site.