Could a QNUPS Pension help reduce the impact of UK Inheritance Tax (IHT) on the future of your assets?
QNUPS (Qualified Non-UK Pension Schemes) are a form of Overseas Pensions available to both those who are U.K. domiciled (whether U.K. resident or not) and are seeking to move their pension overseas.
QNUPS are most commonly used by Expats who are planning on retiring outside of the U.K. and are therefore potentially able to get a preferential tax rate in the country they are retiring in as well as alleviate U.K. inheritance tax (IHT). However, you do not need to be planning to retire abroad to be eligible, they are available to anyone who is U.K. domiciled (whether U.K. resident or not).
The scheme was introduced by the UK Government on 15th February 2010 to correct an ambiguity in the earlier legislation. The initial intention was to exempt a pension fund from IHT on the death of a pension member if no lump sum or other payment was drawn down from the retirement fund.
There are very specific benefits to the scheme, primarily that your assets are effectively removed from the U.K. tax net and introduced to a new tax environment depending on your residence. This can lead to a substantial increase in income derived from your retirement fund. Individuals can also invest more regularly into their retirement fund than the UK annual allowance of £50 000.
Pryce Warner International Group have over 40 years experience handling retirement planning for Expats and we have hundreds of advisors in over 60 countries worldwide. We always ensure to work with clients on a case-by-case basis, carefully assessing each individual’s unique set of requirements to create a plan that is tailored to their needs.
We can help you make the most of retirement today.