QNUPS

QNUPS Explained: International Pension Schemes

A Qualifying Non-UK Pension Scheme (or QNUPS for short) is a trust that acts as an overseas pension scheme. A QNUPS is often used as a form of tax relief, particularly for people who are considered to be high net worth individuals who have already reached their income tax relief and/or lifetime benefit limit on their UK registered pension.

QNUPS are commonly used by overseas residents who aren’t able to contribute to their UK-registered pension plan anymore, providing tax benefits that are similar to the benefits you would receive under a UK-registered pension.

What Is a QNUPS?

Before deciding to invest pension funds in a QNUPS, you need to make sure you fully understand everything involved with the process of setting one up. Getting professional advice from investment advisers is always a good plan – however, this guide will help you get to grips with the basics first.

A QNUPS is an international pension scheme or trust which has zero residency restrictions so it can be used within the UK as well as overseas. Depending on where you live, it should be noted that each country will have different rules based on its unique tax regulations.

QNUPs are often used by high net worth individuals who have already reached their income tax relief and/or lifetime benefit limit on UK registered pensions or by individuals overseas who are no longer able to contribute to their UK registered pension plan. A QNUPS provides tax benefits similar to UK registered pensions.

There are no restrictions on residence – you can live anywhere and establish a QNUPS – however, the tax treatment of the benefits will depend on your country of residence and whether you are still domiciled in the UK.

When Can I Drawdown from a QNUPS? 

One of the best things about a QNUPS is that you can start drawing money from your retirement fund at the age of 55 – instead of having to wait for the state pension retirement age. Many private pensions allow for earlier drawdowns than state pensions, so it certainly can be worth investing in one, particularly with something like a QNUPS, which may grant you a degree of tax relief.

You can’t withdraw all the money at once though. Only 30% of the amount saved can be withdrawn as a lump sum, with the rest providing an income instead. The lump sum isn’t usually taxable under UK law, but it may be taxed in the overseas jurisdiction you’re currently residing in, depending on your present situation. The remaining 70% paid as income may be taxed – this is also dependent on your country of residence.

So long as all the rules and regulations are followed, the funds should accumulate free of UK income and capital gains, giving you valuable pension benefits outside of any UK estate.

The Difference between QNUPS and QROPS? 

Another popular pension scheme for expats is a QROPS, which stands for ‘Qualifying Recognised Overseas Pension Scheme’. It’s similar in some ways to a QNUPS, but there are some key differences.

QROPS are subject to reporting requirements – however, QNUPS are not required to undergo the same process.

The Benefits of QNUPS

Like all pension schemes, there are several benefits that a QNUPS has, particularly when compared to more conventional pension schemes, such as SIPPs (Self-Invested Personal Pensions).

You’ll need to assess whether these benefits are suitable for your individual circumstances – if not, there are several other types of pension scheme available that might be more suitable, which our expert team can guide you through.

Key benefits of QNUPS

  • Tax efficient – QNUPS may provide you with tax benefits that can give you extra income or capital during retirement.
  • Held in a trust – You can choose to nominate people to inherit your remaining capital/assets when you pass away.

QNUPS: Things You Need to Be Aware Of

Though QNUPS continue to be popular, they aren’t suitable for everyone. Before you make the decision to apply, there are several things you should consider. 

Your financial situation, the assets/capital you have, and the country you currently reside in are all factors that will determine whether a QNUPS is for you. 

Here are some key areas to be aware of – and, as always, if you have any questions about QNUPS or just need some expat pension advice, Brite are on hand to help.

As you can see, there’s lots to consider before setting up a QNUPS – as such, seeking out financial advice is recommended. If you’re wondering whether a QNUPS is right for you, fill out our contact form and one of our professional advisors will call you to discuss your overseas pension options. 

Interested in finding out more about QNUPS? Brite Are Here to Help!

If you’ve read through our QNUPS guide and have made the decision that this is the best overseas pension scheme for you, then look no further than Brite, as we’re here to help you get your QNUPS set up.

We understand that pension information can be a little tricky to grasp at times, but if you have any questions, our expert advisers will help to explain everything you need to know in a transparent and honest manner.

If you’ve read through our QNUPS guide and have made the decision that this is the best overseas pension scheme for you, then look no further than Brite, as we’re here to help you get your QNUPS set up.

We understand that pension information can be a little tricky to grasp at times, but if you have any questions, our expert advisers will help to explain everything you need to know in a transparent and honest manner.

Interested in finding out more about QNUPS? Brite Are Here to Help!

If you’ve read through our QNUPS guide and have made the decision that this is the best overseas pension scheme for you, then look no further than Brite, as we’re here to help you get your QNUPS set up.

We understand that pension information can be a little tricky to grasp at times, but if you have any questions, our expert advisers will help to explain everything you need to know in a transparent and honest manner.

If you’ve read through our QNUPS guide and have made the decision that this is the best overseas pension scheme for you, then look no further than Brite, as we’re here to help you get your QNUPS set up.

We understand that pension information can be a little tricky to grasp at times, but if you have any questions, our expert advisers will help to explain everything you need to know in a transparent and honest manner.