Moving back to Hong Kong? Here’s What You Need to Know About Your UK Pension

Thinking of leaving the UK and settling down in Hong Kong again? Whether it’s for family, lifestyle, or just a restart, you’re not alone—many UK tax residents are eyeing a return to the city they once called home.

But before you start shipping boxes or booking flights, let’s talk about something that often gets overlooked: your UK pension.

Because yes, your move can have tax consequences—but with the right planning, you can avoid unnecessary charges and keep more of your hard-earned savings.

Wait—There’s a 25% Tax on Pensions When You Move?

Surprisingly, yes. If you move your UK pension to an overseas scheme, HMRC may slap on a 25% tax charge, depending on how and where you transfer it. It’s called the Overseas Transfer Charge, and many people don’t realise it applies until it’s too late.

That’s why it’s crucial to handle your pension transfer carefully when relocating outside the UK—even to a familiar place like Hong Kong.

So How Does This Affect Me If I’m Moving to Hong Kong?

Good news—the 25% tax doesn’t necessarily apply, if you do things properly.

There are ways to structure your pension transfer that can help you avoid the charge altogether. It all depends on:

• Where your pension is going

• Whether the receiving scheme is recognised by HMRC (hint: think QROPS)

• How long you’ve been a UK tax resident

• Whether you’ve officially left the UK for tax purposes

That last one’s key. Many people think they’ve “left” the UK when they physically move—but from HMRC’s point of view, it’s not official until your tax residency status changes. That can affect how your pension is treated.

What About Leaving My Pension in the UK?

You could leave your pension in the UK and start drawing it down from abroad—but that comes with its own set of challenges:

• Currency risk – Your pension stays in GBP, but your expenses may not.

• Ongoing UK tax exposure – Depending on your residency and domicile status, you might still owe UK tax on your pension income.

• Complicated reporting – HMRC loves paperwork. You might end up having to file self-assessments or deal with double tax treaties.

  
  

What Should You Do?

If you're planning a move to Hong Kong, it’s worth getting ahead of the tax implications—especially with something as important as your pension.

Some tips:

✅ Speak to a UK tax adviser who understands both UK and HK systems

✅ Review your residency and domicile status before and after the move

✅ Explore recognised overseas pension schemes (QROPS) if a transfer is part of your plan

✅ Get clarity on the timing—the when can matter just as much as the how

Bottom Line

Hong Kong is a great place to come home to—and with the right tax planning, you can make the transition smooth and financially sound.

Don't let pension taxes catch you off guard. With the right advice, you can keep more of your savings and enjoy your new chapter with peace of mind.

Need help figuring it all out? We're here to walk you through it—step by step.