QNUPS - Do you want to be able to pass your assets to future generations without a major inheritance tax liability?

Fiduciary Wealth Team

Qualifying Non-UK Pension Schemes or QNUPS as they are commonly known were born as a result of amendments to previous pensions’ legislation by HMRC on 15th February 2010. QNUPS are considered a more flexible pension arrangement than QROPS in that there are no reporting obligations to HMRC, no limits to the amounts that can be invested as they are not subject to lifetime allowance limits, no maximum age limit when an investment can be made and are able to hold almost any investable asset subject to the approval of the trustees. This includes a much wider range of asset classes including cash, financial assets, antiques, fine art and wine collections as well as residential and commercial property.

In addition, all investments made into QNUPS are free of UK inheritance tax and local succession taxes from the outset and legal opinion suggests that even if the QNUPS investor were to return to the UK the assets held under the pension scheme would remain outside of the UK inheritance tax net but of course this has yet to be tested in the courts.

As a bona fide pension scheme (and assuming it is run as such and not just as a tax avoidance vehicle) assets held within a QNUPS remain outside of the scope of the increasingly intrusive EU Savings Directive which is likely to be amended in the near future with a revised remit that will allow it to look through structures such as trusts, foundations and companies with the aim of taxing the ultimate beneficiary.

Looking at the benefits more closely the issue of short term temporary annuity certificates for Spanish tax residents ensures that income drawn from the scheme is treated very favourably for tax purposes – below 3%.

Key Benefits
• No reporting requirements to HMRC.
• Greater investment flexibility.
• Not subject to lifetime allowance rules therefore no maximum contributions.
• Exempt of UK inheritance tax and local succession taxes immediately.
• Legal opinion suggests that you can return to UK and assets would still remain outside UK IHT net.
•Currently outside of EU Savings Directive and likely to remain so.
• Plus all the other benefits which apply to QROPS.

Are you an expat with sufficient wealth to meet your own requirements but fearful of inheritance tax and the impact that this will have on the transfer of wealth to your beneficiaries?

Would you be interested in a pension arrangement which can protect these assets against inheritance tax even if you were to return to the UK?

Our cross border expertise means that when it comes to retirement planning we provide a truly seamless approach no matter what type of pension vehicle you currently have or which tax regime you fall under. Want to find out how QNUPS can work for you? For QNUPS advice, please call us on Tel: 956 796 911 or email