Expat looking for advice on QNUPS? Eager for your family to not pay inheritance tax on your wealth? As a multi award winning UK Qualified financial adviser we’d be glad to help you to understand if QNUPS would work for you.
Contact us today to understand your QNUPS options and answer your QNUPS questions.
ADVANTAGES OF QNUPS
Funding
– No limit on contributions
– No need to have any employment (relevant) income to make contributions
– Can be funded by contribution, transfer from an international pension or QROPS
Growth
– No capital gains tax
– No UK income tax on non-UK source income from investments
– No lifetime limits on fund size
– No investment restrictions, multiple currency options
Benefits
– QNUPS may avoid local succession law, enabling the client to control who inherits
– Flexible income can be deferred until age 75
– UK inheritance tax and local succession taxes may not be payable from the QNUPS fund upon death
– More flexible permitted investments
– If UK income tax is due, only 90% of the income is taxable
– Ability to take a lump sum of up to 30%
– There is no requirement to purchase an annuity
– No reporting requirements to HMRC
WHO WOULD CONSIDER A QNUPS?
– Expatriates saving for their retirement who may wish to return to the UK in the future
– High net worth UK residents or domiciled individuals who have already utilised their maximum income tax relievable pension contributions
– Anyone who, after 6 April 2010, will become restricted to basic rate income tax relief on UK pension contributions
– Individuals wishing to transfer from an International Pension Plan (IPP)
DISADVANTAGES OF QNUPS
No tax relief on contributions. Employer contributions are not advisable.
FEATURES
The regulations state that at least 70% of a member’s relevant scheme funds must be used to provide the member with an income for life and the pension benefits are payable no earlier than age 55.
TAXATION OF THE QNUPS
Income Tax
Outside the scope of UK income tax, unless UK source income is received
Capital Gains Tax (CGT)
No UK tax on chargeable gains made by the QNUPS
Inheritance Tax (IHT)
UK Inheritance tax would not normally be charged