QNUPS - Qualifying Non UK Pension Scheme

QNUPS – the Qualifying Non UK Pension Scheme, is designed for pension income being taken outside of the UK. QNUPS is a pension established outside of the UK, and if it meets specific criteria laid down by HMRC, it qualifies for multiple tax reliefs.

Who is eligible for QNUPS?

QNUPS operate in a country or territory which regulates pension schemes, limits the age at which you can retire to 55, and are recognised for tax purposes in that jurisdiction. Very often, QNUPS operate from highly regulated and tax-efficient overseas jurisdictions, which have double taxation agreements in place with the UK, making them even more tax advantageous for the member.

QNUPS is open to both residents and non-residents in the country in which it is established, which means that a UK resident can potentially open a QNUPS in another jurisdiction, for example, Guernsey, or Hong Kong.

Who will benefit from QNUPS?

Retirement savings over annual and lifetime pension contributions allowance

First of all, QNUPS is an excellent addition to your existing retirement plan. It’s especially attractive for UK & Non-UK residents who have reached the permitted tax-free limit of their domestic UK pension contributions, which right now is £40,000 per year. Therefore, UK residents who have already used their annual and lifetime allowances but who wish to make further contributions without being taxed on the excess might choose a QNUPS, as they are exempt from these limits.

Hold multiple assets classes in an IHT-free mechanism

What is unique about QNUPS is that it can hold more asset classes than a typical pension. Perhaps of the greatest significance is its ability to hold residential investment property.

QNUPS, by being a Qualifying Pension, are exempted from Inheritance Tax, which makes them especially useful in estate and IHT planning. Additionally, if you own assets in other jurisdictions subject to taxes, placing them within the QNUPS can also reduce or mitigate those taxes.

Income Tax and Capital Gains Tax Free Pension

QNUPS are very tax-efficient as they offer tax freedom on retirement income and investment growth to all. These are often used as a second or even third source of retirement savings, where the domestic pension limits may have been reached.

IHT Planning

Even if they live abroad, British Nationals often remain UK-domiciled as they keep their ties to the UK. Therefore, their estates will be taxed on their worldwide assets for IHT purposes at a rate of 40% after allowances.

UK expats and UK residents who have assets valued in excess of the Nil Rates Bands of £325,000 (singles) and £650,000 for married couples should consider using a QNUPS to shelter their wealth from the death duties, as doing nothing will prove very, very expensive.

How can Platinum Financial Services help?

QNUPS is the quickest yet little known solution to protect one’s estate, including property, from inheritance tax. As long as the pension is established legitimately and set up to provide you with an income in retirement, your family, or other beneficiaries, can inherit the assets without paying hefty inheritance taxes following your death. This is where our expertise and advice come in: to ensure all is done and executed in your favour while considering all the rules and directives surrounding QNUPS.

The cost of quality healthcare is at a premium. We have close partnerships with market-leading international healthcare insurance companies that offer sustainable products making sure that we can match the required level of cover to your budget.

We don’t charge you for our services, so premiums are the same as going directly to the insurance company. What you get is advice on the plan’s benefits and coverage limits that make sense to you and your financial situation.

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