If you’ve ever wondered what QNUPS stands for, it’s a Qualifying Non-UK Pension Scheme. This is an overseas pension scheme in which cash and assets that are not eligible for UK tax relief can be contributed. The regulations that allow them was introduced by the HMRC in 2010 creating some exciting investment and savings opportunities for British nationals; both expats and those still resident in the UK.
Top up your assets
The real attraction of a QNUPS is that they offer an excellent place for savers to top up the overall amount of assets and capital needed for a comfortable retirement. Working with an adviser you will be able to establish the level of retirement benefits required to achieve the standard of living you wish to enjoy in retirement and calculate the contributions required.
No annual allowance
Annual and lifetime allowances do not apply to QNUPS so UK resident individuals who have used their allowances but wish to save more for their retirement may find them ideal as there is no limit on the amount an individual can add to their QNUPS to fund their retirement. They are also ideal retirement savings vehicles for people planning their retirement and may wish to return to the UK in future.
In addition to providing a good way of extracting of wealth in a tax-efficient manner QNUPS are also not subject to UK Inheritance Tax rules and it can even be possible to contribute to a scheme after you have retired. A QNUPS can also prove beneficial for people who live and work in different locations for long periods of time. Instead of creating a pension plan that has to be funded in one country, they are a fully international retirement plan.