The QNUPS stands for Qualified Non UK Pension Schemes. It came into existence when the UK government launched it on 15th February, 2010. It is an offshore retirement plan that lets you avoid the Inheritance Tax (IHT) effectively so that you can pass on your hard earned assets to your heirs without the ills' of taxation. IHT has long been considered to be a sore to the UK citizens. Expats who wish to return to the UK in future will find it useful.
What is QROPS?
QROPS is the Qualifying Recognized Overseas Pension Schemes. It provides you considerable planning opportunities so that you gain advantages in terms of investment. It is a safe option of retirement, especially if you want to settle abroad.
What are the grounds that differentiate a QNUPS from a QROPS?
Both are designed to relieve the users of the rigors of the UK tax system. However, the former has the benefits of a QROPS and some other aspects are included too. While every QROPS has to meet the QNUPS regulations, the latter need not always be a QROPS. The differences between the two are:
The former has no obligation associated as far as reporting to the HRMC (Her Majesty's Revenues and Customs) is concerned. However, QROPS rules specify that the HRMC has to be reported with the details of any withdrawal during the first five years.
A QROPS has a system of double taxation attached; the former is free from the system of double taxation.
Transfers in a QNUPS include non-pension belongings while a QROPS is made for transfers from the pension schemes that are on hand. The former offers you a wider range as far as category of wealth are concerned. Moreover, there is no restrictions regarding the maximum amount that can be put in or the
You get the relief from taxes after you die in the former case; in case with QROPS, you have to be a non-resident for the entire period of five-tax-years.