Your UK pension when emigrating from the UK to Dubai (UAE)

If you're moving from the UK to Dubai (UAE), one of the first money questions is what happens to your pension. The destination system here is Expat retirement savings.

Can you transfer a UK pension into Expat retirement savings?

The UAE has no QROPS and no personal income tax, and no local pension to transfer into — so you keep your UK pension (usually in a SIPP). Drawing it while UAE-resident can be tax-efficient, but UK rules and the UK-UAE tax treaty decide what the UK can still tax, and you'll need to fund retirement saving yourself. Get cross-border advice.

The 25% overseas-transfer charge

HMRC can apply a 25% Overseas Transfer Charge to a UK pension moved into a QROPS that doesn't meet the exemption conditions. Getting this wrong is one of the most expensive mistakes in the whole move — model it before you transfer anything.

Your real options

• Leave it invested in a UK SIPP or workplace scheme and draw it later — usually the simplest, and often the best.
• Where a compliant QROPS exists in Dubai (UAE), transfer after taking advice on the overseas-transfer charge and the destination's tax treatment.
• A blend — consolidate UK pots into one SIPP now, decide on transferring once you're settled and the tax picture is clear.

Decide what happens to your pension before you move money — the right answer is tied to your UK residence status, your age, and whether Dubai (UAE) has a QROPS-registered scheme.