info@glenq.com
+44 1534 484480

QNUPS

A Qualifying Non – UK Pension Scheme (QNUPS) is an overseas pension that falls with the definition contained in section 271A of the inheritance tax act and the inheritance tax regulations 2010. The legislation restored inheritance  tax  protection  to  certain  Non – UK Pension  Schemes that  are  broadly equivalent to UK  pension schemes.

Advantages of QNUPS

Funding

  • No limit on contributions
  • No need to have employment (relevant) income to make contributions
  • No reporting requirements to HMRC
  • Can be funded by Contributions and transfers from an international pension.

Who Would Consider a QNUPS.

  • Expatriates saving for their retirement who may wish to return to the UK in the future.
  • High net worth UK residents or domiciled persons who already have utilized their maximum contributions.
  • Anyone wishing to transfer from an International Pension Plan.

Taxation of the QNUPS

  • Outside scope of UK income tax, unless UK source income.
  • Capital Gains Tax.
  • No UK tax on chargeable gains made by the QNUPS.
  • UK Inheritance tax would not normally be charged.

 

Further Information please contact
Iain Quenault – + 44 1534 484480
Email – Iain@glenq.com

Growth

  • No Capital Gains tax.
  • No UK Income tax on non UK source income from investments.
  • No lifetime limits on fund size.
  • No investment restrictions.
  • QNUPS may avoid local succession law.
  • Flexible income deferred to the age 75.

Taxation on Benefits paid by a QNUPS

  • The possible benefits on retirement potentially include a lump sum 30 % of the fund, benefits on incapacity and early retirement and death benefits.
  • If a member is Non-UK resident on retirement, there will be no UK tax payable but may be taxed in the jurisdiction in which they reside. A UK resident would pay tax on 90% of the income paid from the QNUPS.
  • No requirement to purchase an annuity.

Loans to members

  • If a member is not retired a loan may be granted to them. It is vital that this is on commercial terms and Jersey rules allow 30 % of the value of the fund can be used for this purpose.

Conclusion

  • QNUPS can be used by UK residents as a flexible mechanism for providing retirement benefits. Particular useful as a “top up”. It is important contributions made are proportional, both  in overall wealth and to their existing pension rights.

QNUPS FEE STRUCTURE

INITIAL AND SET UP FEE

QNUPS Sapphire      
Restricted to one Offshore Investment Bond

£1500

QNUPS  Diamond    
Unrestricted Investment options (subject to Trustee Approval)

£2000

MINIMUM ANNUAL RESPONSIBILITY FEE

QNUPS Sapphire

£2000

QNUPS  Diamond

£3000

TYPICAL ACTIVITY FEES

Activity and service fees are charged on specific activities undertaken by the Trustees and Plan Administrator. Activity and Service fees are in addition to the Annual Responsibility Fee and list below.

Additional contributions

£100 per contribution (minimum contribution of £1000)

Changes to named beneficiaries

£100 per notification

Investment Transaction Charges:

Any deals placed directly with the Discretionary Investment manager – Free 

Changing investment platform / manager – Time spent basis.

Additional charges may apply to certain investments (subject to Trustee approval) eg. property, unlisted shares, syndicates etc. 

General correspondence other than directly related to the establishment.

Fee based charge on time spent basis.

Exit Administration Fees

£1000