A QNUPS refers to a Qualifying Non UK Pension Scheme. A QNUPS is available to anyone who is either UK-resident or UK-domiciled, Non-Resident or Non-Domiciled but has investment assets in the UK.
The Benefits of having a QNUPS
- A QNUPS, unlike other pension schemes, does not just accept contributions from a financial source (i.e. pensions/savings, shares, cash), it can also consist of property and assets – it can also include other items of value i.e. fine wines, antiques
- If you have shares in a Private Company these can be placed in such a Trust and the dividend income and any resultant Capital Gains would be sheltered from both Corporation/income tax and CGT
- Contributions can also come from your own savings or investments – not just from your income
- There is no upper age limit for contributions
- There is no requirement for the QNUPS to be situated in a country where there is a double-taxation agreement – thus it is outside HMRC’s jurisdiction
- Like a UK Pension scheme you cannot ordinarily access any part of the funds before age 55. If you need to do so, however, it may be possible to get a loan from the scheme.
- There is no lifetime maximum limit eligible for relief – unlike other pension schemes
- If you are into buying investment property ( it is essential that all property holdings have a rental income) Stamp Duty may be avoided on the purchase of the property
- Dividend income remitted back into the QNUPS Trust avoids Income Tax
- Any growth of funds/investments within the QNUPS is free from Capital Gains Tax
- If you have IHT concerns, then a QNUPS is a legitimate way of avoiding Inheritance Tax