Do I need QNUPS? If you are looking to settle abroad but want to enjoy UK pension benefits then you do need this scheme.
QORPS and QNUPS are extremely beneficial for those wishing to transfer their UK pension funds to another country, with the latter offering additional inheritance tax benefits. They are great schemes to have Offshore Investments, which gives you the option of earning better in the future. The tax benefits on the Retirement Fund are the main highlights of QNUPS. So if you plan to retire abroad, then to enjoy all the benefits of your tax-free pension, you need this plan.
QNUPS has only been around for a few months and has already created huge ripples in the ocean of offshore investment due to its lucrative tax benefits. Although QORPS brought many tax benefits when it was introduced in 2006, people were not yet exempt from UK IHT. But with the introduction of the ‘UK Non-Skilled Pension Scheme’ that is fixed.
Previously, when the UK domiciled investor dies, their pension will be taxed under IHT before being passed to the investor’s heir. But with QNUPS, one no longer has to worry about this aspect. The heirs get their inheritance in full without problems. Sometimes a newly formed coalition government can raise the inheritance tax threshold that this scheme affects. But the implementation of this rule is unlikely to find a place on the statute book because it is highly controversial and the two parties will never agree.
Planning for IHT is one of the unique benefits that QNUPS offers, because it is completely exempt. There are a large number of investment options for future benefits and a wide range of assets that can be transferred to this plan. You can also participate in investing in residential property, but you can’t include the house you live in in the plan. It not only includes conventional assets, but also includes rather unusual assets like fine wine and antiques. In addition to these benefits, there is no upper limit for contributions or age limit to stop contributing. You can continue to accumulate assets without limit or restriction to transfer them tax-free to your heirs.
If you have any further questions about this scheme, you should consult a QNUPS advisor for proper guidance on the matter. They have the experience and knowledge to help you make the right choice.