Qualifying Non UK Pensions Schemes
QNUPS should be considered if:-
You own substantial cash / assets and/or earn a very substantial income
You want your assets to grow in a tax-efficient pension environment
You want to top-up your pension in the most tax-efficient and flexible way
You want to protect your assets against UK Inheritance Tax (IHT)
QNUPS grow free of Capital Gains Tax
QNUPS protect you and your heirs from IHT
No Lifetime Gift charge
Generally much more tax-efficient than owning assets personally
QNUPS are tax efficient in most countries and may enable the member to avoid both local wealth taxes during his/her lifetime and succession taxes on his/her death
If income is taken from a QNUPS by a UK resident, generally only 90% of the income would be subject to UK tax
The Agility QNUPS is currently exempt from the EU Savings Tax Directive
QNUPS are not subject to UK Pension Sharing Orders on Divorce
Allow significant opportunities for enhancing pension provision
There is no reporting requirement from QNUPS providers to HMRC
Assets can be invested and any benefits taken in a currency of the holder’s choice which provides an opportunity to remove currency risk
How do I Fund my QNUPS?
You transfer cash, assets or personal wealth into the QNUPS
There are no HMRC restrictions on contributions into your QNUPS
Additional contributions can be made at a later date
There is no Annual Allowance restriction
There is no Lifetime Allowance restriction
Very substantial contributions are often allowable, subject to your status
Contributions should be from individuals and not from their employer
Your main residence cannot be accepted, but other residential properties can be held
You should personally retain enough assets to live on prior to retirement
What are my Investment Options?
Most assets are allowable, subject to Trustee consent
Residential property, fine wine, fine art, antiques may all be acceptable
Assets which will depreciate, such as cars and yachts, are generally excluded
Your investment decisions should be based on your specific circumstances and objectives. You should always seek advice and consult with a tax and wealth management specialist on how QNUPS can help you in your individual circumstances.
Management and control of investments must rest with the Trustees. In practice the Trustees are happy to consider investment recommendations from you or your appointed investment adviser although they reserve the right to reject investment options if they are inappropriate
What are my Retirement Options?
Prior to age 55 the Agility QNUPS can, at Trustee discretion, offer a loan facility (on a commercial basis) of up to 30%
From age 55 you can withdraw a 30% cash lump sum
At age 55 you can choose to draw an income, or buy an annuity
You are not forced to take any income until you reach age 75
Income is paid from the Agility QNUPS without the deduction of tax
What are the Death Benefits?
In the event of death, funds can go to your heirs or beneficiaries without deduction of UK IHT
As the funds are not considered under Probate, they can usually be accessed immediately
There is no 7 year qualification period as there would be under other investment vehicles
A Spousal Bypass Trust can be set up if wished
Why do QNUPS work?
The Inheritance Tax (Qualifying Non-UK Pension Schemes) Regulations 2010 [SI 2010 /051] came into force on 15 February 2010 and introduced QNUPS. Our seperate technical notes explain matters in depth.