Qualifying Non-UK Pension Schemes (QNUPS) were bought into force
on 15 February 2010 by HMRC, creating further opportunities for
British expatriates to become more tax efficient on local taxes and
inheritance tax (IHT).
QNUPS, which should not be confused with Qualifying Recognised
Overseas Pension Scheme QROPS, offer expatriates to
continually pay money into a scheme once they have retired abroad,
something that they were not entitled to with a QROPS.
As such, the main benefits of investing within a QNUPS
- There is no maximum age in which you can invest within
- You do not need to receive income from employment to
make a contribution
- There is no maximum limit of what you can invest into
There is flexibility within the changes by the HMRC which allow
someone who is over the age of 80 to put large investments into a
QNUPS, creating tax efficient advantages for themselves and their
With a QNUPS you are entitled to take your lump sum as you would
with any other pension scheme, however, you may also accumulate
your fund by investing regularly into it throughout your
retirement. Upon your death the remainder of your fund will be
passed on to your beneficiaries free from inheritance tax.
Qualifying for a QNUPS employs similar criteria in order to
qualify for a QROPS. Income can only be taken
from the age of 55 (from April 2010) and you must have already
retired or plan to be retiring abroad.
Other advantages of a QNUPS scheme are:
- It is potentially very tax efficient and in most
countries you are able to avoid local wealth taxes
- QNUPS avoid local laws on death duty, meaning you are
able to choose who inherits your money
- Assets will grow free from tax
- You can hold both a QNUPS and QROPS but no reporting
responsibilities are held unless the QNUPS scheme holds assets from
If you would like more information on how a QNUPS scheme can
benefit you, please contact us.