QNUPS is the latest development in UK tax legislation that can offer great benefits. As against before, as per the new statutory law, the new Qualifying Non UK Pension Schemes are exempt from UK inheritance tax. Thanks to these regulations, a new set of offshore pension schemes have come into existence ever since to take advantage of this legislation. Whats more, these schemes can be based in any country and not just in those countries that have signed a double taxation agreement with UK. Also, the schemes are not required to be registered with HMRC and comply with their reporting rules.
There is no restriction on the amount of contribution that can be made into QNUPS. The funding itself can be made from business profits and even from personal investments and assets. These schemes are a productive alternative to normal UK pension and retirement schemes where there are certain restrictions. If you intend to contribute over and above the maximum allowed by other UK pensions, QNUPS is the best solution. Also due to the fact that such schemes benefit from IHT exemption, it doesnt really matter where the funds come from and there is great potential to save a lot of taxes.
The investment made in QNUPS can grow free of any taxes. Except for non reclaimable withholding tax on UK dividends and rental income resulting from UK property, the funds invested in these qualifying schemes are not subject to any taxes and even the non UK assets are completely free from taxes. From residential property to holiday homes to any other kind of investments, the scheme allows for anything and everything to be invested in it. The other benefits of this qualifying scheme include withdrawal of either the pension income or a cash lump sum, enjoying the benefits right from the age of 55, 100% of the fund can be transferred to successors in the event of death without any inheritance tax and flexible levels of income that are allowed to be drawn.
QNUPS comes as a boon to current expats having UK pensions, residents who wish to move offshore in the near future or after their retirement or even those who are high tax rate payers. The issue of inheritance tax has always been painful for UK residents. With
QNUPS, there seems to be a permanent solution to it. However, it is very important to get the correct and detailed information before deciding on entering the scheme. The first step towards a secure future is to get correct advice.
