Transferring UK Pension or Savings to Zimbabwe: What's Possible, What's Taxed, and What's Not

For Zimbabweans who have spent part of their working lives in the UK, pension pots and savings accumulated here represent significant financial assets. Whether retiring to Zimbabwe, supporting family, or simply repatriating wealth, understanding how to move these funds — and what HMRC, Zimbabwe Revenue Authority (ZIMRA), and pension trustees have to say about it — is essential before making any decisions. **UK State Pension If you have paid enough National Insurance contributions during your time in the UK, you may be entitled to a UK State Pension regardless of where you retire. The full new State Pension (2024/25) is £221.20 per week, though the amount you receive depends on your NI record. You can claim it even if you live in Zimbabwe — however, Zimbabwe is not on the UK's list of countries with a social security agreement with the UK. This means your State Pension will be frozen at the rate it is when you first claim it, or when you leave the UK, whichever comes later. It will not increase with inflation each year as it would for UK residents. This is a significant long-term financial consideration. Payments can be made directly into a Zimbabwean bank account, though this involves currency conversion. Many recipients prefer to keep a UK bank account active and transfer funds as needed using services such as Wise, WorldRemit, or Mukuru to access better exchange rates. **Workplace and Personal Pensions For defined contribution pensions (the most common type for people who worked in the private sector after the 1980s), you can access your pot from age 55 (rising to 57 in 2028). You can: - Take up to 25% as a tax-free lump sum - Draw down the remainder as income (taxed as earnings in the UK) - Purchase an annuity - Transfer the pot to another qualifying scheme If you are no longer a UK tax resident when you take pension income, you may still be subject to UK income tax on pension withdrawals, depending on the source. HMRC taxes UK-sourced pension income even for non-residents, though a double taxation agreement (DTA) could affect this. Zimbabwe and the UK do have a Double Taxation Agreement, originally signed in 1982. Under this agreement, pension income is generally taxed only in the country of residence — meaning if you are tax resident in Zimbabwe, you may be able to claim relief from UK tax. This requires completing HMRC form DT-Individual to apply for exemption from UK withholding tax. Professional tax advice is strongly recommended before acting on this. Defined benefit (final salary) pensions generally cannot be transferred overseas without specialist advice, and transferring out of a DB scheme worth more than £30,000 legally requires regulated financial adviser sign-off in the UK. **Qualifying Recognised Overseas Pension Schemes (QROPS) Some individuals explore transferring their UK pension pot to an overseas pension scheme — known as a QROPS. However, since 2017, transfers to a QROPS where the member does not reside in the same country as the QROPS incur a 25% Overseas Transfer Charge unless specific exemptions apply. Zimbabwe does not have a recognised QROPS framework, so this route is not straightforwardly available for most people intending to retire there. **ISAs and UK Savings Accounts ISAs lose their tax-free status once you become non-UK resident — you cannot contribute to them after the tax year you leave, though funds already in an ISA can remain invested. Withdrawals from ISAs are not taxed in the UK. Transferring ISA funds to Zimbabwe is simply a matter of moving money from your UK account, using a remittance provider for currency conversion. Interest earned on UK savings accounts while non-resident may still be subject to UK withholding tax, though the DTA may again provide relief. **ZIMRA and Tax in Zimbabwe Zimbabwe taxes residents on worldwide income, so pension income received while resident in Zimbabwe is in principle taxable there. However, enforcement and practical taxation of foreign pension income by ZIMRA remains inconsistent, and the DTA framework should limit double taxation. Keeping clear records of what has been taxed where is important. **Practical Steps - Trace old UK pensions using the government's free Pension Tracing Service (pensiontracing.service.gov.uk) - Notify your pension providers of your change of address and residency status - Apply for HMRC NT (no tax) coding via form DT-Individual if claiming DTA relief - Maintain a UK bank account for receiving pension payments and converting funds at your preferred pace - Seek regulated financial advice from an adviser experienced in cross-border UK-Zimbabwe matters before making large transfers or pension decisions