British citizens who decide to retire overseas have a number of options when it comes to deciding on where to invest. The details of your personal circumstances and objectives need to be taken into account when planning ahead.
A QNUPS might be a solution to your retirement objectives as it can hold a wide range of asset classes and has various tax benefits which provide an opportunity for greater capital growth and income. Here are some of the details that will help you understand ‘What is a QNUPS’ and if a QNUPS is an option for you.
Advice For Expats
A Qualified Non-UK Overseas Pension Scheme (QNUPS) is an HMRC approved overseas-based pension fund; this new form of pension plan was introduced in 2010 by the British authorities to facilitate retirement planning in a jurisdiction of choice. Many British expats choose to invest in a QNUPS in order to gain more control over their pension plan and maximise their retirement benefits.
A QNUPS is a flexible option for UK pension holders and many of the investment restrictions British citizens residing abroad faced in the past, have been eased.
Is A QNUPS For Me?
British citizens who are considering becoming a resident in a foreign jurisdiction or planning to retire permanently overseas might benefit from a QNUPS. Investing in a QNUPS provides an ideal opportunity to safeguard their assets and reduce the tax liabilities on their estate.
A QNUPS allows British expats to invest in a pension fund in their country of residence when they retire overseas, thereby receiving the tax advantages offered by that jurisdiction. Here is a list of some of the benefits:
- Greater control over the management of the pension fund
- Increased investment flexibility (QNUPS can hold a wide variety of assets)
- Greatly reduce or be exempt from UK inheritance tax
- Can accept money that has not been earned in employment
- No need to make a lifetime contribution
- No maximum age at which you can make payments into a QNUPS
- Minimum age for a QNUPS is 18
QNUPS In Brief
A QNUPS is an overseas pension scheme that meets HMRC criteria and gives UK pension holders permanently living abroad an opportunity to invest in a pension fund offshore which has the flexibility to invest and hold assets in a way that would not normally not be allowed in the UK.
A QNUPS specialist financial adviser will be able to offer the best advice on the benefits and opportunities of a particular jurisdiction; taking into account your personal circumstances and requirements.
British citizens who plan to retire overseas and become permanent residents in a foreign jurisdiction may find that the benefits associated with a QNUPS their best retirement option.
QNUPS (Qualified Non-UK Pension Scheme) were introduced by the British authorities in 2010 and have a number of benefits for British expats planning retirement; such as tax relief and the ability to hold various assets classes.
When looking at investing in a QNUPS, there are a number of conditions that need to be considered. Factors such as domicile status, pension structure, type of pension etc. must be taken into account.
There are many thousands of Britons living abroad who have taken advantage of the benefits of investing in a QNUPS; a QNUPS will allow you greater investment flexibility and control over your pension fund while significantly reducing or eliminating inheritance tax.
The following overview of QNUPS eligibility criteria is a guide to make it easier to understand if you qualify:
Who Can Apply?
- Any British citizens (expats) that reside permanently outside the UK
- Anyone who is a UK pension holder can take a QNUPS
- Must be at least 18 years old (no maximum age limit)
- Should have a private pension scheme
- Should be resident overseas
- Must be looking to consolidate assets
A QNUPS Has Numerous Benefits For British Expats Planning Their Retirement
- Flexible investment that holds a wide range of assets, much greater than a normal UK pension; such as your own home and other properties
- You can take a loan from your QNUPS
- You can transfer an existing QROPS into a QNUPS
Investing in a QNUPS offers retired British expats an excellent opportunity to safeguard and maximise their pension fund offshore. It is important to manage your retirement plans and grow your pension fund whilst avoiding unnecessary risks; it is recommended that you to contact an authorised financial adviser with specialist knowledge of the legal requirements and tax laws of a particular jurisdiction. A specialist financial adviser will answer your questions on your QNUPS eligibility, taking into account your individual circumstances and requirements.
A Qualifying Non-UK Pension Scheme (QNUPS) is a pension fund introduced by the HMRC in 2010; it offers British expats who are permanently residing in another country, a number of benefits including substantial tax reductions.
Individuals can transfer just about any asset into a QNUPS.
A QNUPS can hold a wide range of assets, including investments, assets, residential property and cash. In addition to this, the transfer of unconventional assets to a QNUPS such as a wine or antique collection is also allowed.
This offers QNUPS holders the opportunity to safeguard and maximise the growth of their assets in addition to providing increased tax protection on a broader collection of assets.
QNUPS have become one of the most popular offshore pension schemes in the UK because of the flexibility that a QNUPS transfer offers. QNUPS can hold a wider range of asset classes and offer more investment options for individuals than a QROPS. QNUPS assets transfers are much more flexible and you can also take a loan from the QNUPS.
As a QNUPS allows for the investment of assets and other items there is no need to liquidate assets prior to transferring to a QNUPS. Individuals can hold property or antiques in their QNUPS scheme and pass them on intact to their beneficiaries. In contrast to other UK pensions, assets which have been transferred to a QNUPS scheme qualify for immediate inheritance tax mitigation. With a QNUPS there is no statutory wait of seven years following the date of the transfer for the IHT mitigation to become effective.
Asset Growth And Transfer
All asset growth and capital gains on QNUPS investments are passed on to the beneficiaries upon the death of the member, so in effect all the assets that you transfer to a QNUPS can continue to grow, and the assets including the benefits are safeguarded. Your QNUPS assets are transferred to your named beneficiaries upon your death with greatly reduced or zero inheritance tax (it must be established that this tax relief benefit is available prior to investing in the QNUPS scheme).
- Assets grow in a safe (HMRC approved) tax efficient environment
- Transfer of your assets into a plan for named beneficiaries
- Assets may be held and the pension paid out in any major currency
- It is possible to transfer an existing QROPS into a QNUPS
A QNUPS gives British expats the opportunity to invest in an offshore pension fund and to transfer their assets into an HMRC approved scheme. Safeguarding and growing your assets within a QNUPS makes the decision on which jurisdiction to invest in a daunting task, and depends on your personal circumstances. Specialist financial advisers are in the best position to offer sound advice on QNUPS to people retiring overseas, taking into account their individual needs and specific requirements.
If you are planning to transfer your UK pension offshore; a QNUPS offers a perfect opportunity to British expats looking to safeguard their assets and reduce tax liabilities on their estate.
QNUPS allows for flexible investment options and tax efficient advantages and is recommended for those wanting maximise the growth of their fund.
These QNUPS transfer next steps will help you prepare for an investment in a QNUPS pension scheme.
Do I Qualify?
Your fist step when investigating your QNUPS options is to check if you qualify for a QNUPS. You are eligible if:
- You are 18 years old (no maximum age limit)
- Your pension has sufficient funds to generate the tax savings and interest to justify the set-up costs
- You are planning retire abroad or are a permanent resident in a foreign jurisdiction
Chat To A Specialist Financial Adviser
The next step is to get sound advice and find out if you might benefit from investment in a QNUPS. A reputable financial adviser with an understanding of the QNUPS rules and those of particular jurisdiction is in the best position to give you advice specific to your individual needs and objectives.
Download Our QNUPS Guide
Download our comprehensive QNUPS guide for an explanation and overview of all that you need to know about the benefits of investing in a QNUPS. Our guide will answer most of your questions; you can also contact our reputable registered financial adviser for advice on the advantages of a QNUPS and which jurisdiction to choose, based on your personal circumstances.
Investing In A QNUPS
After selecting the jurisdiction and particular QNUPS scheme, the actual investment is the most important of the QNUPS next steps. Having decided which QNUPS scheme is for you, our reputable registered financial advisor will arrange for your assets to be invested in your new QNUPS. At this point your financial advisor will keep you updated on each stage; you are now well on your way to protecting your assets in a friendlier tax climate which also allows for more flexible investment options.
How Long Will It Take
It is not necessary to liquidate your assets before investing in a QNUPS so it is generally a relatively quick process. A financial advisor will be able to give you a more accurate timeline after assessing your scheme based on the requirements and rules which vary between jurisdictions.
Enjoy Your Retirement
Once you have completed all the QNUPS next steps, you can relax and enjoy your retirement knowing that you’re benefitting from all the advantages a QNUPS investment offers. Our financial advisors are always available to address any concerns you might have regarding your new QNUPS pension scheme.