Do I need QNUPS? If you are looking to settle abroad but want to enjoy UK pension benefits then yes you need this scheme.
QORPS and QNUPS are extremely beneficial for those who want to transfer their Pension funds from UK to another country, with the latter offering additional Inheritance Tax benefits. They are great schemes to have Offshore Investment, which gives you the option to earn better in the future. Tax benefits on the Retirement fund are the main highlights of QNUPS. So if you are planning to retire abroad then to enjoy the full benefits of your pension tax-free you need this scheme.
QNUPS has only been out for a few months and it has already created huge ripples in the ocean of Offshore Investment because of its lucrative tax benefits. Even though QORPS brought in many tax benefits when introduced in the year 2006, people were still not exempt from the UK IHT. But with the introduction of "Qualifying Non UK Pension Scheme" that is taken care of.
Previously, when the UK domicile investor dies, his pension will be taxed under the IHT before being handed over to the investor's heir. But with QNUPS, one does not have to worry about this aspect anymore. The heirs get their inheritance as a whole without hassle. Sometimes a newly formed coalition government can raise the threshold of Inheritance Tax affecting this scheme. But the implementation of this rule is unlikely to find a place in the statute book because it is highly controversial and the two sides will never agree.
Planning for IHT is one of the unique benefits that QNUPS offers, because it is fully exempted. There are a whole lot of investment options for future benefits and wide range of assets that can be transferred into this scheme. You can also engage yourself in residential property investment, but cannot pull the house that you live in into the scheme. It not only includes conventional assets but it also includes quite unusual assets like fine wine and antiques. In addition to these benefits there is no upper limit for contributions and no limit of age to stop contributions. You can keep on accumulating assets without any limit or restriction to pass them on to your heir's tax-free.
If you have any further questions about this scheme you should consult a QNUPS adviser to rightly guide you in this regard. They have the experience and knowledge to help you make the right decision.