QNUPS is an excellent way to make tax free investments for retirement. It benefits those who want to pass on their investments to their heirs without burdening them with inheritance tax. It also allows investments to be made even after retirement.
QNUPS or Qualifying Non UK Pension Scheme is a great way to secure your funds for retirement while at the same time saving your heirs the trouble of having to pay Inheritance Tax (IHT) on the assets you pass on to them. There is a perception that most overseas pensions are only for the wealthy. However, this is not true. Anyone who is above the age of 18 can put their funds in offshore schemes and benefit from their investment being free from taxes.
Of course, the people who benefit most from investing in QNUPS are those who want to make a saving in Inheritance Tax that they would have to pay when assets are passed on to them. The laws regarding tax on inheritance is a subject of debate and controversy in the UK for the reason that other forms of taxes have already been collected on the assets that are inherited. The value of an asset falling under the purview of IHT changes in almost every budget. Homes are one of the most commonly inherited assets and with the real estate prices steadily increasing over the years, many middle income families also find themselves falling into the net and being levied tax on inheritance. A simple way to avoid this is to transfer residential property and other assets into QNUPS.
Another reason to invest in these schemes is if you want to continue to accumulate funds beyond retirement. In traditional pension schemes, investments can be made only for a fixed period. However, with QNUPS the investments can continue even after the person crosses the age when he has to retire. This is especially helpful for those who run their own business as they can keep working and saving for as long as they choose rather than be restricted by a fixed term as with pensions.
By investing in this scheme people who have assets of high value or even assets that have grown in value over the years can pass on their belongings to their heirs after death without subjecting them to taxation. The best part is that besides transfer of residential property, which some traditional schemes accept, other assets such as antiques and fine old wines can be put into
QNUPS. What this means is that you can transfer all your savings into these offshore schemes and benefit from investment that is free of taxation and your heirs will benefit by not being taxed on the inheritance they receive from you.
