Transfer My Vanguard SIPP As A Non-UK Resident
British expats holding a Vanguard SIPP are increasingly being told they must transfer their pension away after becoming a non-UK resident. For many, this instruction arrives with little explanation and creates unnecessary urgency, confusion, and tax risk.
This article explains why Vanguard requires non-UK residents to move their SIPP, what transfer options are typically available to British expats, and how to structure a UK pension in a way that remains appropriate while living overseas, with flexibility should circumstances change in the future.
At The Wealth Genesis, we specialise in cross-border UK pension advice for internationally mobile clients, acting in a fiduciary capacity to ensure decisions are driven by suitability and long-term outcomes rather than short-term fixes.
Who This Guidance Is For
This guidance is for former UK residents living abroad with UK pensions who expect to remain non-UK resident, with a possible return to the UK in the future.
It is particularly relevant if you:
Hold a Vanguard SIPP and are no longer UK resident
Have been contacted by Vanguard and asked to transfer your pension
Intend to remain overseas, but want to keep future options open
Want your pension structured appropriately for life abroad without creating problems if circumstances change
Why Vanguard Is Asking UK Expats to Transfer Their SIPP
Vanguard has gradually restricted the services it offers to clients living outside the UK. In recent years, this has included UK ISAs, Vanguard SIPPs, and UK investment accounts.
Non-UK resident clients are typically informed that they must transfer their assets to another provider or face account closure.
This is not due to any issue with your pension or your residency status. It reflects regulatory limitations on servicing overseas clients, increased compliance requirements, and Vanguard’s focus on UK-resident investors.
Importantly, this does not mean you must access your pension or crystallise benefits. You are being asked to move the pension wrapper, not take income.
Handled correctly, this can be an opportunity to align your pension more appropriately with your international circumstances.
Why a Transferring a Vanguard SIPP Requires Careful Planning
For many expats, a SIPP represents their largest long-term asset. A poorly structured transfer can result in loss of UK tax advantages, unnecessary overseas tax exposure, restricted investment choice, and complications if residency changes in the future.
The key question is not simply where to move your Vanguard SIPP, but how it should be structured to work effectively while you are living overseas, without limiting future flexibility.
This becomes particularly important where overseas tax systems, reporting requirements, or long-term international plans need to be taken into account.
Vanguard SIPP Transfer Options for British Expats
For British expats, the objective is typically to place the pension with a structure that is designed to support non-UK residents, remains within the UK pension framework, and can accommodate international mobility.
In many cases, this means transferring the Vanguard SIPP to an International SIPP.
International SIPP is designed for expatriates and internationally mobile individuals. It remains subject to UK pension legislation, can provide broader investment flexibility, and may integrate more effectively with overseas tax planning.
Crucially, it can be suitable whether you intend to remain outside the UK long term or you may return in the future. The priority is ensuring the pension is structured appropriately while you are overseas, while preserving flexibility should circumstances change.
Why Pension Transfers Should Not Be Looked at in Isolation
A Vanguard SIPP rarely exists on its own.
Most expat clients also hold UK ISAs, UK investment accounts, offshore cash, or overseas employer pensions. Each of these assets may be taxed differently depending on country of residence, long-term plans, and how investments are structured.
A SIPP transfer should therefore be considered as part of a coordinated cross-border strategy, rather than as a standalone administrative exercise.
Our Fees and How We Work
At The Wealth Genesis, we provide fiduciary, cross-border advice rather than transactional pension transfers.
Our fees reflect the complexity involved in advising internationally mobile clients and typically consist of:
An initial advice fee of £3,000
An ongoing advice fee of 0.85%
Plus underlying product and platform costs
All fees are disclosed in advance and confirmed before any work is undertaken. The precise structure will depend on individual circumstances, residency, and the scope of advice required.
Frequently Asked Questions
Can I keep my Vanguard SIPP if I live outside the UK?
In most cases, no. Vanguard has informed many non-UK resident clients that they must transfer their SIPP due to regulatory and servicing restrictions. This does not mean you must access your pension.
Does transferring my Vanguard SIPP trigger tax?
A correctly completed SIPP-to-SIPP transfer should not trigger UK tax. Issues typically arise only if pensions are accessed rather than transferred, or if overseas tax considerations are not properly taken into account.
If I might return to the UK, does that change what I should do?
The priority is ensuring your pension is structured appropriately while you are non-UK resident, without restricting flexibility if circumstances change. An International SIPP can often support this approach, subject to individual advice and suitability.
Do I lose UK pension protections if I transfer?
No. A properly structured transfer preserves UK pension legislation, protection from FSC and access under UK pension rules. The key is ensuring the receiving scheme is appropriate for your circumstances and residency.
What happens to my Vanguard ISA if I live abroad?
ISAs cannot be contributed to while non-UK resident, and many platforms require overseas clients to transfer or close ISA accounts. For those who may return to the UK in the future, retaining ISA wrappers where possible can be highly valuable and should be considered as part of wider planning.
Do I need regulated advice to transfer Vanguard SIPP?
While not always legally required, regulated advice is strongly recommended for non-UK residents due to the interaction between UK pension law, overseas tax rules, and platform restrictions.
Final Thoughts
Being asked to transfer your Vanguard SIPP as a non-UK resident does not mean something has gone wrong. It reflects the reality that many UK platforms are no longer structured to support internationally mobile clients.
With the right advice, it is possible to restructure your pension in a way that works effectively while you are living overseas, preserves UK pension protections, and retains flexibility should your circumstances change in the future.
If you have been asked by Vanguard to transfer your SIPP and would like to understand your options before taking action, an initial conversation can help clarify the most appropriate next steps. You can book an discovery meeting with a member of our advice team below.
