QNUPS – A Guide
QNUPS stands for Qualifying Non UK Pension Scheme. This plan was initiated in the early months of 2010 when the UK administration announced that certain kinds of overseas pension plans were to be exempted from the UK inheritance tax.
The term "qualifying" may be described as an overseas annuity policy that fulfills the HMRC's specific criteria for their retirement fund plans that will not draw an IHT. The plans must be based in a foreign country and they can be availed in any nation, even including those which have not inked the Double Taxation Agreements with the British government.
This scheme has come as a boon for those who are concerned with inheritance tariffs in the United Kingdom and want to bequeath something to their successors from their richly deserved earnings post their retirement.
This is a lawful means to lessen IHT by means of investments in offshore pension plans. It is extensively accessible. It does not have to be located in countries that have a DTA (Double Taxation Agreement) signed with the United Kingdom. This implies that where there isn't any DTA, there is no requirement for reporting, so the plan and attendant deals are clear of the purview of the HMRC. You also have an enhanced option of nations that can host a QNUPS.
Pensions more often than not engender tax breaks; respites and exceptions on tax are provided typically up to a maximum value on the highest amount. QNUPS has no such restriction. There isn't any higher age limit for availing this plan. This scheme is open to all of the non-resident British citizens, depending on the rules of the individual plans. Nevertheless, IHT exclusion can be used only if you choose to go back to the UK inside of five years.
QNUPS lets investments on assets obtained by any means excluding the earned income. Growth is not liable under CGT. This is a major aspect since the administration has now increased CGT rates related to tax payers in higher slabs. Growth of assets exempt from CGT means potential profits from the capital growth of QNUPS assets from the time of the bequest. The HMRC will be intensely observing the moves of contributors as they might be keen to stop people from abusing this plan and its various rules merely to steer clear of tax as QNUPS is a tax reducing plan. Expert guidance is essential to make the most of this system.
In conclusion, QNUPS offers an ideal scheme for the retired people who want to invest prudently and get the benefits. With professional help, you can get the maximum benefit.
The term "qualifying" may be described as an overseas annuity policy that fulfills the HMRC's specific criteria for their retirement fund plans that will not draw an IHT. The plans must be based in a foreign country and they can be availed in any nation, even including those which have not inked the Double Taxation Agreements with the British government.
This scheme has come as a boon for those who are concerned with inheritance tariffs in the United Kingdom and want to bequeath something to their successors from their richly deserved earnings post their retirement.
This is a lawful means to lessen IHT by means of investments in offshore pension plans. It is extensively accessible. It does not have to be located in countries that have a DTA (Double Taxation Agreement) signed with the United Kingdom. This implies that where there isn't any DTA, there is no requirement for reporting, so the plan and attendant deals are clear of the purview of the HMRC. You also have an enhanced option of nations that can host a QNUPS.
Pensions more often than not engender tax breaks; respites and exceptions on tax are provided typically up to a maximum value on the highest amount. QNUPS has no such restriction. There isn't any higher age limit for availing this plan. This scheme is open to all of the non-resident British citizens, depending on the rules of the individual plans. Nevertheless, IHT exclusion can be used only if you choose to go back to the UK inside of five years.
QNUPS lets investments on assets obtained by any means excluding the earned income. Growth is not liable under CGT. This is a major aspect since the administration has now increased CGT rates related to tax payers in higher slabs. Growth of assets exempt from CGT means potential profits from the capital growth of QNUPS assets from the time of the bequest. The HMRC will be intensely observing the moves of contributors as they might be keen to stop people from abusing this plan and its various rules merely to steer clear of tax as QNUPS is a tax reducing plan. Expert guidance is essential to make the most of this system.
In conclusion, QNUPS offers an ideal scheme for the retired people who want to invest prudently and get the benefits. With professional help, you can get the maximum benefit.