Introduced by HMRC last year in February 2010, the Qualifying Non-UK Pension Scheme (QNUPS) is an exciting new pension opportunity for British Expatriates. The QNUPS allows British Expatriates to save money on taxes in their country of residence, on UK inheritance tax, along with a number of other benefits.
The QNUPS was actually borne out of kinks in the legislation of the QROPS . The pension scheme that emerged from the fine tuning actually comes laden with so many benefits that many experts have questioned its legitimacy, convinced that such benefits could only come as a mistake. However, this is most certainly not the case as the legislation for the QNUPS began its drafting process in 2008, giving HMRC ample time to nix any features.
A QNUPS gives its holder a host of advantages. These include unlimited fund size, unlimited contributions, freedom to invest the money however you want, no inheritance tax on all assets in the QNUPS and inheritance tax still isn’t a factor even if the QNUPS holder returns to or is a resident of the United Kingdom. QNUPS holders can receive payments in lump sums, as an income or even take a loan.
Even if you have a QROPS you can still take out a QNUPS and, if you want to, transfer the QROPS funds into the QNUPS, providing you departed from the UK before the 6th of April 2005.
QNUPS are taking expatriate pension schemes into unchartered territory, more than just a pension the QNUPS is essential for expats interested in wealth preservation.
For more information please see our section dedicated to QNUPS, or let us put you in touch with a recommended financial planner.