A QNUPS (Qualifying Non-UK Pension Scheme) is a personal pension scheme qualified by HMRC. It is not designed for UK pension transfers, but for ‘tax neutral’ money (i.e. savings that have not benefitted from tax relief).

One of the most beneficial aspects of a QNUPS is that all assets within the trust are free of UK inheritance tax. This makes them a very effective tool for estate planning, as assets within the trust also benefit from ‘gross roll up,’ whereby the growth within the policy is free of capital gains tax and income tax. This is significant, as your investments can compound at a much greater rate.

Unlike a SIPP or QROPS, the assets inside a QNUPS can include UK residential property. However, it must be for the purpose of providing a retirement income and not ‘death bed’ tax planning.

The benefits of transferring to a QROPS include the following:

  • Qualified by HMRC
  • Pass your pension on to named beneficiaries of your choice
  • No inheritance tax, even on residential property
  • No need for probate on the proceeds following death
  • Full control over investments with the aid of a financial adviser
  • Control over how and when you take benefits from age 55

QNUPS can be an excellent estate planning tool, especially for larger estates. To find out how you can benefit, please contact us.