A Qualifying Non-UK Pension Scheme (QNUPS) is a type of non-UK pension scheme used for retirement planning. It is typically used by high-net-worth individuals who have already maximised their tax relieved UK pension allowance and seek further retirement provisions. The Lifetime Allowance (LTA) was abolished in 2024.
A QNUPS is a type of overseas pension scheme that was introduced by HMRC legislation in 2010. It allows for flexible retirement planning beyond the scope of domestic UK pensions, making it an attractive option for UK expats and internationally mobile individuals.
QNUPS legislation is designed to allow United Kingdom domiciled individuals to make retirement provisions that extend beyond their UK pension. The scheme is beneficial for individuals looking for additional retirement savings options and a more flexible set of investment choices. A QNUPS can help mitigate the impact of UK inheritance tax on assets held offshore, providing a valuable tax-free retirement benefit.
Expat Pension
High-net-worth UK expats living overseas who wish to make additional retirement provisions can take advantage of a QNUPS. These individuals may not have access to an international pension plan, such as a Self-Invested Personal Pension Plan (SIPP) or a Qualifying Recognised Overseas Pension Scheme (QROPS). Through a QNUPS, UK and non-UK citizens can hold assets in a tax-efficient manner, avoiding liabilities like capital gains tax and reducing their exposure to UK inheritance tax for IHT purposes.
Employer Pension Contributions
Employers can also contribute to a QNUPS on behalf of their employees as part of an offshore pension plan. This can be beneficial for companies with internationally mobile employees who want to offer long-term, tax-efficient retirement solutions.
QNUPS offer several tax benefits that make them a valuable tool for both retirement and estate planning:
QNUPS are intended to provide retirement income, not to avoid paying UK IHT. Contributions should align with retirement income needs and be documented when setting up a QNUPS. A QNUPS offers the ability to withdraw a tax-free lump sum and provides income through drawdown. The taxation of retirement benefits varies based on the country of residence and the jurisdiction of the pension plan.
Read more below with our QNUPS Frequently Asked Questions (FAQs)
Read our FAQs (Frequently Asked Questions) on how a QNUPS can provide retirement benefirts and protect your family from UK inheritance tax (IHT).If you’re looking for a QNUPS provider, we work with the world's leading trust companies giving you peace of mind that your pension money is safe and secure. Capital for Life can also help you choose a policy from the world's largest life insurance companies to give you the retirement income you need and the life cover you want. Speak to one of our advisers about our Pension for Life solution and get a quote now. Enjoy peace of mind that you’ll be looked after by one of the leading independent life insurance brokers and partners.
QNUPS are suitable for UK residents, both UK-domiciled and non-domiciled, as well as non-UK residents. They provide a way for internationally mobile individuals to set up a tax-efficient overseas retirement plan that offers long-term inheritance tax protection.
As of the 2023-2024 tax year, the UK lifetime allowance (LTA) for pensions was £1,073,100. However, in March 2023, during the Spring Budget, the UK government announced the removal of the lifetime allowance from April 2024. This means that there is no longer a limit on the total amount you can accumulate in a pension fund without facing additional tax charges.
Up to April 2024, the LTA remained at £1,073,100.
From April 2024, the LTA has now been abolished, allowing unlimited pension savings without facing the excess charge.
While the removal of the LTA might reduce the immediate need for QNUPS among individuals simply seeking to avoid LTA charges, QNUPS still offer substantial benefits for inheritance tax planning, international tax efficiency, and pension asset diversification.
The age at which QNUPS benefits can be drawn depends on the jurisdiction in which the pension is held. For example, a Guernsey QNUPS allows income withdrawals from the age of 55, while a Malta QNUPS permits pension commencement from the age of 50. Consulting a financial adviser is key to optimising your tax-free retirement benefits based on local laws.
QNUPS pension providers can be used in Guernsey or Malta which are typical jurisdictions for these types of plans to be held.
Guernsey offers a politically stable jurisdiction for QNUPS, with several double taxation agreements that can benefit pension members. The jurisdiction also meets the regulatory requirements for a QNUPS as a non-registered pension scheme, helping individuals reduce their liabilities related to UK inheritance tax.
When selecting a QNUPS provider, it is important to consider several factors:
Yes, under certain circumstances, it is possible to transfer an existing QROPS to a QNUPS, provided the QROPS scheme rules allow it. Both QROPS and QNUPS are considered overseas pension schemes, and many QROPS also qualify as QNUPS, allowing for flexible pension transfers.
As of the 2023-2024 tax year, the UK lifetime allowance (LTA) for pensions was £1,073,100. However, in March 2023, during the Spring Budget, the UK government announced the removal of the lifetime allowance from April 2024. This means that there is no longer a limit on the total amount you can accumulate in a pension fund without facing additional tax charges.
Up to April 2024, the LTA remained at £1,073,100.
From April 2024, the LTA has now been abolished, allowing unlimited pension savings without facing the excess charge.
While the removal of the LTA might reduce the immediate need for QNUPS among individuals simply seeking to avoid LTA charges, QNUPS still offer substantial benefits for retirement and inheritance tax planning, international tax efficiency, and pension asset diversification.
International financial advice companies can provide QNUPS guidance.
Contact Capital for Life to speak with one of our partners who can give QNUPS financial advice.
The best international life insurance solutions for high net worth clients investing into a QNUPs. Secure your financial future with - Pension for Life - our bespoke retirement solution, crafted with our expert partners, ensure lifelong financial peace of mind for you and your loved ones.
Your offshore pension will be one of the largest assets you own. Our QNUPS provider is a leading global trust company meaning you know your pension will be safe and secure. Our life policy solutions for QNUPS are from the world's largest insurers.
Speak to your financial adviser or directly to us about the QNUPs options you have and the benefits for you.
Email us at enquiries@capitalforlife.com and we will be ready to assist you.
Yes, we recommend individuals considering a QNUPS should take advice. Capital for Life can refer you and your adviser to offshore pension tax advice specialists.
Speak to a Capital for Life appointed adviser in your country or directly to us about the options you have for using a life policy in your QNUPS offshore pension. Email us at enquiries@capitalforlife.com and we will be ready to assist you.
Still have questions about QNUPS and life insurance policies? We're here to help. Reach out to us at enquiries@capitalforlife.com or call us on 052-772-6262 for the best life insurance quotes
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