QNUPS – Qualifying Non-UK Pension Schemes

By Retirement
QNUPS – Qualifying Non-UK Pension Schemes

QNUPS is one of the latest buzz words in the expat pension world – but few retirement savers understand how the schemes work and that they are open to UK taxpayers.

Most pension advisers concentrate on retirement solutions for high earning expats, but QNUPS can offer similar tax effective funds for them and UK residents.

QNUPS basics

To help overcome some misconceptions about QNUPS, here are a few important points to consider:

  • QNUPS – Qualifying Non-UK Pensions are for UK taxpayers, expats and international workers
  • Like most other UK and expat pensions, QNUPS allow members to drawdown a tax-free lump sum of 25% – 30% of the fund value on retirement from age 55
  • Funds are exempt of  UK income or capital gains taxes
  • Annual contribution rules or lifetime allowances do not apply
  • Investments are open to a broader range of assets than most other pensions, including cash, private company shares, stock options, buy-to –let investments, commercial property, art, fine wines and classic cars
  • Some QNUPS may allow members to borrow up to 25% of the fund value, providing the money is repaid on commercial terms
  • QNUPS can run alongside other pensions that may have contribution and lifetime allowance caps without affecting reliefs on contributions
  • Earlier access to funds is available to those retiring early for medical reasons

One of the most common potential QNUPS solutions is for high net worth individuals seeking work -arounds for annual contribution restrictions or the lifetime allowance.

Pension solution for high earners

This lets UK taxpayers contribute fully to a tax relieved onshore scheme, like a SiPP, while running a QNUPS alongside to soak up extra contributions.

Many global companies are investigating QNUPS for their highest earners as an employee benefit.

If you are looking for QNUPS advice, then Qrops Investor has skilled IFAs who can talk you through the benefits.

QNUPS are not financial solutions for everyone – but for some they are the ideal tax-effective retirement option.

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