You may or may not have heard of a QROPS but if you have a UK personal pension, as many ex-pat Brits do, this article may be of some interest to you.There is much uncertainty surrounding this subject for individuals that are now considered as US tax resident/citizens. Although this short article is by no means comprehensive, it will aim to make clear some of the main points on the subject.QROPS BasicsThe term QROPS is an acronym for ‘Qualifying Recognised Overseas Pension Scheme’, a title that the HMRC bestowed upon certain overseas pension schemes that meet specific requirements (Although, HMRC have now changed the term to ROPS). These schemes must conform to being as closely aligned to how UK pensions are organised and operated in order to maintain this status.If any overseas pension providers do not keep their plans aligned to the legislation, they risk losing their QROPS status with the HMRC. If they do lose this status, the overseas pensions will be unable to accept transfers into them without triggering an unauthorised tax penalty charge which could be up to 55% on the value of your pension. Historically, Guernsey used to be the most prominent offshore jurisdiction that led the market with QROPS pensions until the majority of them were delisted back in 2012; Malta has now become the main provider.QROPS are basically an overseas personal pension plan that is similar to a UK personal pension. Meaning, the pension will grow tax deferred until you begin taking an income which will then be taxed by the IRS.If you would like to discuss this matter in more detail then please do get in touch with us.