Sometimes it’s better to look through a quick guide to a financial product while you are still making your mind up about whether it is something you want to pursue. So what is a QNUPS, and do you want one?
The definition
A QNUPS is a Qualifying Non UK Pension Scheme, which means it is one meets the criteria set by the regulations the UK government brought out in February of 2010.
The criteria involve the standards on which the schemes are set up and regulated abroad, and HMRC are likely to enforce those standards strictly, judging on what they have been like at enforcing the QROPS criteria. QROPS have been around since 2006, and HMRC have been quick to pounce on any pension scheme that falls foul of their requirements.
In fact, QROPS are a type of QNUPS which are only allowed to accept UK pension assets. However there are a number of QNUPS which are not QNUPS which benefit from a wide range of advantages.
The advantages
Speaking of advantages of QNUPS, they almost seem too good to be true. The regulations which introduced them confirmed that they are exempt from UK inheritance tax, which means that QNUPS will undoubtedly be used for IHT planning.
But QNUPS are not just a one-trick IHT pony. Assets that are saved in them also grow free from CGT.
They are also a democratic form of overseas saving vehicle – being open to people of all ages. A QNUPS member can contribute to their pension for as long as they like, as there is no upper limit on the age members have to stop saving.
Likewise there is no upper limit on the amount that can be contributed.
How do you get one?
Like QROPS, QNUPS are best approached with a qualified adviser at your side. Given that the schemes have only been around since February, no one can say that they have decades of experience of them. However, an adviser with years of experience in helping people find overseas pension solutions must be your best bet.
