Qualified Non-UK Pension Scheme ‘QNUPS’ was first introduced by HMRC in February 2010
A QNUPS is a pension scheme based outside of the UK that qualifies for an exemption from UK Inheritance Tax (IHT)
A QNUPS is a pension fund that has a degree of flexibility and has some significant tax advantages.
QNUPS are open to all UK tax residents and overseas residents, including UK domiciled individuals.
Anyone can invest in a QNUPS unless the country where you are resident specifically excludes this.
A QNUPS can be an attractive option for UK residents who are close to exceeding or have already used their annual and lifetime allowances but who wish to make further provisions for their future retirement.
A QNUPS can also provide attractive pension planning for non-UK residents and non-UK domiciled individuals who may decide to move to the UK or UK ex-pats who may wish to return to the UK in the future.
A QNUPS is also an ideal arrangement if you wish to supplement your UK pension but cannot contribute to this due to insufficient UK earnings or are living in a country that does not offer pension arrangements.
There is no minimum or maximum limit on the amount invested in a QNUPS and no age limit meaning that you can contribute for as long as you wish.
You can make contributions to a QNUPS from both accumulated earned income and assets. If contributing assets, these do not have to be liquidated prior. There are many accepted assets into a QNUPS, the most popular assets being residential property and antiques.
Cost-effective to set up – A QNUPS can be established with a one-time setup fee
In February 2010, the UK government announced a set of rules that confirmed that some offshore pension schemes would not be liable to UK Inheritance Tax. A QNUPS can offer a shelter for your assets in an offshore pension scheme, therefore offering a legitimate way of alleviating your inheritance tax bill.
Another benefit of a QNUPS is that it does not have to be held within countries that have signed a DTA (Double Taxation Agreement) with the United Kingdom.
This is very advantageous, as it does not have to be located within a country with a DTA agreement, therefore mitigating any reporting requirements to the UK.
As a QNUPS does not have to be reported to HMRC and can be hosted in several other countries, this gives you a wider choice and more control of the decision of where you would like your assets to be held.
A QNUPS is not taxed for your capital gains. Therefore, upon death, the full growth of your assets will be distributed to your chosen beneficiaries.
