Qualifying Non-UK Pension Schemes (QNUPS)
Qualifying Non-UK Pension Schemes (QNUPS) were introduced in the UK in 2010 and can be an attractive retirement wealth management tool for both British expatriates and UK residents.
Most QNUPS are established as overseas personal pension arrangements.
As QNUPS are pensions the principal reason for establishing one is to provide retirement benefits in the form of income in retirement.
Depending on your circumstances, the benefits of QNUPS can include:
- More flexibility than UK pension schemes.
- There is no requirement to have earnings from employment in the year in which you make a contribution.
- No maximum contribution.
- Provision of an income for life (once over age 55) and the option to take the 25% pension commencement lump sum.
- Any currency can be invested, so expatriates can avoid exchange rate risk and costs.
- Income and gains within a QNUPS roll up tax free (taxation of income depends on your country of residence).
- Unlike other overseas pension schemes, QNUPS are exempt from UK inheritance tax (provided it was set up to provide pension provision), regardless of your domicile status.
- There is no scheme reporting to HM Revenue & Customs.
- A QNUPS may provide further tax benefits for expatriates, depending on the tax regulations in their country of residence. In Spain, for example, they are taxed very favourably.
In the right circumstances, a QNUPS offers a highly flexible and tax efficient wealth planning structure. With our UK and overseas taxation expertise and in depth knowledge of UK pension schemes, Blevins Franks can help you use QNUPS to significantly improve your personal tax position on your investable wealth. Contact us now to find out more.
