A QNUPS is a Qualified Non-UK Pension Scheme which was introduced by HMRC in February 2010 and is a regulated tax efficient pension scheme which allows investment of wealth overseas.
Although a QNUPS is a pension fund it does have a degree of flexibility and has some significant tax advantages. Anyone is eligible to invest in a QNUPS unless the country where you are resident specifically excludes this.
QNUPS benefits
- Tax free asset growth
- QNUPS is widely available in several countries and not only in countries that have Double Taxation Agreements with the United Kingdom
- Tax efficient – no inheritance tax and may be able to avoid local wealth taxes in many cases
- No maximum age limit to take a QNUPS
- Contributions can be for income derived other than from employment
- Growth is free from Capital Gains Tax (CGT). This means that the capital growth of your asset will be passed on to your named beneficiary
- The costs associated with taking a QNUPS is extremely reasonable and includes a onetime setup fee
- There is no minimum value to take a QNUPS; however, QNUPS providers might recommend a minimum amount
- May hold assets such as property, arts, antiques, fine wines and investments
- You can decide who will inherit assets and funds by designating beneficiaries
QNUPS Benefits Free from Inheritance Tax
QNUPS was introduced in February 2010 by the UK government by a set of rules that confirmed that certain offshore pension schemes would not be subject to the UK’s Inheritance Tax. By taking a QNUPS an individual can shelter his/her assets in an offshore pension scheme. QNUPS provides a legitimate way of mitigating your inheritance tax bill.
Availability
One of the other QNUPS benefits is that it does not only have to be located in countries that have signed the Double Taxation Agreement with the United Kingdom. This is very advantageous as it has two significant issues. Firstly, since it does not have to be located in country with a DTA, there needs to be no reporting requirements. So a QNUPS does not have to be reported to HMRC. Secondly, QNUPS can be hosted is several other countries thereby giving you wider choice.
No Maximum Limit
With a QNUPS, there is no maximum limit on how much can be transferred. Other offshore pension schemes might have a limit, but with a QNUPS, you can decide how much you want to invest.
No Maximum Age for Contributions
Unlike other overseas pension schemes, there is no maximum age limit to contribute to a QNUPS. You can contribute for as long as you like.
Tax Efficient
QNUPS are tax efficient. The most important part of taking a QNUPS is that your assets including capital gains are passed on to your named beneficiaries without any tax cuts. In other overseas pension schemes as much as 40% could be charged as tax, but with QNUPS you can eliminate those charges.
Contributions
Another one of the benefits is the contributions is unlimited and can be made from a variety of sources. Contributions to a QNUPS need not only be made from income earned but from assets acquired by you in any way. Assets do not have to be liquidated prior to taking a QNUPS. Residential property, antiques and even fine vintage wines are accepted.
No Capital Gains Tax
Another one of the popular QNUPS benefits when you take a QNUPS is that you will not be taxed for your capital gains. The full capital growth of your assets will be passed on to your beneficiaries.
