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Updated 29 Jun 2010

In February 2010 the UK Government created a new type of trust known as Qualifying Non-UK Pension Schemes (QNUPS) – not to be confused with Qualifying Recognised Overseas Pension Schemes (QROPS). QNUPS enable British expats to save tax in their country of residence and on inheritance tax.

QNUPS are particularly suited to retired expatriates who are able to draw both an income and lump sums from the pension during their lifetime, and pass on the remainder of the fund to heirs on death free from inheritance tax. A retiree who has long-since stopped earning a salary can put lump sums into a QNUPS which immediately escape inheritance tax even if UK domiciled – there is no requirement to wait seven years to avoid the tax. 

The benefits of QNUPS include:

  • No requirement to pay contributions from employment-sourced income;

  • No maximum age for investing;

  • No maximum limit;

  • Helps avoid both local wealth taxes and inheritance tax;

  • Assets within the fund grow free of tax;

  • Income can be drawn from the age of 55, but there is no obligation to draw an income until the age of 75;

  • The trustees of a QNUPS have no reporting obligations to HMRC unless the scheme also holds any assets transferred from an authorised UK pension scheme;

  • You can have both a QROPS and a QNUPS.

Please contact a reputable Independent Financial Advisor to find out more about QNUPS.

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