What is a QNUPS?
A QNUPS is Qualifying Non-UK Pension Scheme which was introduced by the UK's HMRC in 2010.
Who can benefit from a QNUPS?
QNUPS for offshore UK expats
- A high net worth individual (HNWI) living overease who wants to make pension provision. This could be because they have little or no pension provision. They may not have access to an international pension pkan. e.g. no company pension and/or no/small UK pension
- An employer wishing to contribute to a pension on behalf of an employee as a form of offshore pension plan
QNUPS for UK residents
- A UK pension fund that is close to, or with growth, could exceed the lifetime allowance (currently £1,073,100).
- A client wishing to add to their pension without a (lifetime allowance charge of 55%) upon taking their UK pension.
- The maximum £40,000 annual allowance is used (assuming no allowance restrictions) and 3 previous tax years annual allowances all used.
- A supplement to a pension for a client who does not have sufficient relevant UK earnings.
QNUPS tax advantages
There are several tax advantages of using a QNUPS as part of your retirement and estate planning.
- Unlimited pension contributions
- No 20% chargeable lifetime transfer tax on contributions
- No lifetime limit
- Tax free investmemt growth
- Up to 30% tax free cash lump sum
- No UK inheritance tax saving 40% tax
- No HMRC reporting requirements
- 100% of a QNUPS can be passed to beneficaries
A QNUPS should be set up for the purpose of providng an income in retirement. Contributions to the pension plan should be in proportion to an individual’s retirement income needs, and this should be evidenced when setting up your pension.
Read more below with our QNUPS Frequently Asked Questions (FAQs)