Can You Still Contribute to a UK Pension After Leaving the UK?
Many expats are surprised to learn that their UK pension doesn’t just freeze the moment they move abroad. In fact, under certain conditions, contributions can continue for several years. Here are the key takeaways:
Who qualifies?
Only “relevant UK individuals” get tax relief – meaning you still have UK earnings, were UK-resident in one of the last five years or fall under specific exemptions (like Crown Servants). And if you were a UK resident when you joined the scheme.
The five-year rule
If you move overseas, you can generally contribute up to 100% of your UK earnings in the tax year you leave. For the next five tax years, you may contribute up to ÂŁ3,600 gross annually with tax relief. After that, contributions can still be made, but typically without tax relief.
Automatic enrollment & redeployment
What if your UK employer expands overseas? For example, setting up in Australia or the US and redeploying staff abroad. If employees remain on a UK contract during secondment, the employer usually still has automatic enrollment duties – even while staff are working overseas. Any employer contributions may continue, but personal contributions depend on whether the employee keeps UK-taxed earnings. Without them, they’ll usually be capped at £3,600 per year for up to five years after leaving the UK. (See The Pensions Regulator for full guidance.)
Employer & seafarer rules
Employers can keep contributing (with potential corporation tax relief), and even seafarers may continue making tax-relieved contributions thanks to the Seafarer’s Earnings Deduction.
For US citizens
Your UK pension may need to be reported on your US tax return – so specialist advice is essential to avoid unexpected tax complications.
Bottom line
UK pensions remain a powerful planning tool for expats, but the rules change once you leave. Knowing how long you can contribute – and whether you’ll get tax relief – can make a big difference to your retirement strategy.
If you’ve left the UK (or plan to) and want to maximize your pension options, it’s worth reviewing your situation with a cross-border advisor.
Some of the content of this communication was provided by third parties of BlackPoint Capital Partners. We have not verified the information contained herein, but we believe the content is reliable. None of this content should be construed as legal, accounting or tax advice. Tax laws are complex and often have highly-individualized requirements, you should seek the advice of a competent tax professional if you have specific tax questions.
