Providing information and clarity

for British Expats looking to Transfer their UK Pension Offshore

 

Qualified Non-UK Pension Schemes (QNUPS)

 

As of 15th February 2010 the HMRC opened up a totally new opportunity for Expats in the form of QNUPS (Qualifying Non-UK Pension Scheme). This was introduced as part of The Inheritance Tax (Qualifying Non UK Pension Schemes) Regulations 2010 (SI 2010 / 0051) - "The Regulations".

 

http://www.legislation.gov.uk/uksi/2010/51/regulation/1/made

 

Click here for Downloadable PDF

 

The regulation defined the criteria for a Qualified Non-UK Pension Scheme and restrictions in order for a QNUPS to qualify to be Inheritance Tax Free in the event of Death of the member.

 

How has HMRC defined a QNUPS?

 

QNUPS must be recognised for tax purposes under the tax legislation of the country or territory in which it is established.
   
The scheme is open to persons resident in the country or territory in which it is established.
   
Tax relief is not available to the member on contributions made to the scheme by the member or, if the member is an employee, by their employer, in respect of earnings to which benefits under the scheme relate.
   
The scheme is liable to taxation on its income and gains and is of a kind specified in the Schedule to these Regulations. (NB - Zero Taxation is also recognised as a system for Taxation)
   
The scheme is established in a country or territory where there is a system of taxation of personal income under which tax relief is available in respect of pensions.
   
The scheme rules must provide that at least 70% of a member's relevant scheme funds will be designated by the scheme manager for the purpose of providing the member with an income for life, or, in the case of a member who has died, so provided immediately before the member's death.
   
The pension benefits payable to the member under the scheme (and any lump sum associated with those benefits) must be payable no earlier than age 55.
 
What is the difference between a QROPS and a QNUPS and what are the benefits to Expats?

 

A QNUPS is essentially a QROPS except without the strict reporting requirements to the HMRC.
   
A 30% Tax Free Lump Sum can be taken.
   

QNUPS have the ability to hold a wider variety of assets including:-

 

• Company Shares.

• Commercial Property.

   
Add additional Funds - Either funds that have already be accumulated or continue savinga on a monthly, quarterly or annual basis.
   
Significant Investment & Currency Choice
   
100% Capital Protected Investments Available
   
The ability to return to the UK but still hold on to IHT protection for your assets.
 
Can we Help? - If you are a British expat or you have lived in the UK and contributed to a UK Pension for over 7 years and want information on how to transfer your pension offshore, we can help you. You could be transferring your UK pension abroad into a QROPS or QNUPS tomorrow!

 

You could be saving you and your family significant amounts of Pension income that could currently be lost.

 

*Recommended for expatriates that have been working out side of the UK for 5 full tax years or more or intend to do so and also intend to Retire outside of the UK.

   
   
   
   
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