Qualifying Non-UK Pension Scheme (QNUPS):Benefits and how to apply?

The main benefits of UK pension investments, whether they take the form of employer, personal or self-invested schemes, are well known. They provide tax efficient financial security in retirement and fit the needs of the great majority of pension investors.

UK Pension Limitations

There are limitations that apply to UK pensions in terms of;

  • the  amounts that can be invested;
  • the size of pension “pot” which can be accumulated and;
  • the types of investments which can be made.

The role of QNUPS

Many wealth creators and entrepreneurs need greater flexibility and freedom in respect of their pension and retirement strategy than offered by “regular” UK pensions. There are various alternatives available which cater for these requirements and which also benefit from UK government approved tax breaks as apply to regular UK pensions. Below we outline the role of QNUPS as one of these alternatives.

A Qualifying Non-Uk Pension Scheme (QNUPS) is a regulated tax efficient pension scheme. It can be used by UK Tax residents. The scheme was introduced by HMRC in 2010.

For example, entrepreneurs with share holdings likely to yield a substantial imminent capital gain will find a UK pension upper limit may not accommodate their bespoke needs. QNUPS provide great flexibility in terms of assets it can hold, including private shares and residential property.

QNUPS also provide great flexibility in terms of timing of taking benefits.

Summary benefits of QNUPS

  • No limit on contributions that can be made
  • Tax free asset growth. No CGT while assets remain within the QNUP
  • There is no age restriction to taking up a QNUP
  • Assets within QNUP sit outside ones estate and therefore not subject to IHT
  • Modest up front cost and low annual maintenance fees
  • Highly flexible in terms of allowable assets ( such as residential property, private shares etc)
  • Highly flexible in terms of beneficiary arrangement
QNUPS are not a retail product and advice should be sought before establishing a QNUPS.

The Wilton Entrepreneur’s team would be delighted to provide you with further information.

T: +44 (0)207 355 3525

E: entrepreneursadvice@wiltongroup.com 

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