However, there are two major differences between a QROPS and a SIPP:
The funds invested in a QROPS are not held in the UK
QROPS are only available to UK non-residents such as British Expats in the USA
Until recently it was not possible for British expats to import a UK pension fund to a QROPS if they were resident in the USA either as a stand-alone scheme or in amalgamation with a USA-based pension arrangement such as an IRA or a 401K.
While UK regards USA as a suitable jurisdiction for receiving an exported British pension, the Internal Revenue Service (IRS) in USA imposes a restriction on such imports. There is an irrevocable disparity between the coding systems for pensions in each country. Even though Britain’s HRMC has approved QROPS in the United States, the IRS will not permit them to accept transfers of British pension funds.
Furthermore, British occupational pensions in general are regarded by USA and Canada as being over generous by their standards. The problem for people with UK pensions is that US laws do not recognise them and therefore US residents must report funds to the IRS and may be liable to pay US tax on the growth of any pension funds, as well as the income from it.
However, it is now possible for British expats living in the USA to legitimately transfer UK pensions into a QROPS.