The main advantage that a retiree can expect from the QNUPS is the exemption from the IHT or the UK Inheritance Tax. This is one of the factors that made this Offshore Pension scheme one of the popular financial scheme from the Investment point of view. The reduction of Tax to such a great extent makes this plan one of the lucrative option in the hands of the UK citizen who has Retirement schemes.
It was back in February 2010 when the government of UK put forward the IHT status of some of the Offshore Pension scheme which includes QNUPS. The availability of the various sizes and shapes of the "Qualifying Non UK Pension Scheme" attracted many UK residents who are residing in other countries. In addition like the QROPS scheme, it doesn't have any reporting back requirement for the fund usage.
If you are already aware of the overseas Retirement schemes, then you must have come across QROPS which is also known as "Qualifying Recognized Overseas Pension Schemes", which is a part of the QNUPS. But the viability of all these schemes must however, meet the strict criteria's set by HRMC. There are certain "Qualifying Non UK Pension Schemes" which offer UK Inheritance Tax exemption despite not being a QROPS.
Apart from the Tax exemption, which is a lucrative option for Brits, QNUPS offer wide array of benefits and these are:
■ CGT free growth
■ There is no upper age limit for the Investment and contribution part. The government put forward that even if a person reaches sixty years of age, he/she can still continue to contribute for the accumulation of funds and pass it over to their heirs
■ QNUPS also makes it clear that there is no limit in terms of fund contribution in a financial year or in a lifetime. This is because contributions can vary from year to year and more the years you have the more better it is. The scheme doesn't restrict you from putting in as much as you want.
■ The contributed asset doesn't necessarily have to be in cash all the time. You can put in assets into the fund which are not yet liquidated. This is what makes this scheme unparalleled in terms of flexibility than other schemes. It also offers the policy holder to contribute in the fund by non-traditional class of assets.