QNUPS is an offshore pension investment scheme that operates in various countries outside the boundary of UK
. QNUPS is an excellent option for those UK citizens who are residing abroad but want to enjoy their retirement pension fund, which they have accumulated over the years and that too without paying UK IHT or Inheritance Tax. This allows them to save sufficient funds to pass on to their heirs. In addition, this offshore investment scheme doesnt require any reports to be given to the HMRC; these are the reasons which make it so popular.
There are certain requirements of the QNUPS which has been laid down in the Inheritance Tax Act of 1984, section 271A, which states that it should fall under the tax legislation and should be used only for tax purpose in that country where it is based. It also states that it should be put forth by an established and recognized international organization only for rendering pension benefits. That international organization must meet all the norms of the International Organization Act, which is governed by subsection 1 of the Order in Council.
There are certain requirements for a retirement scheme to be identified solely for tax purpose in order to qualify as a QNUPS. These requirements are that the pension scheme should be an occupational scheme run by a recognized body in the country in which it operates. Apart from that a minimum of 70% of the funds of a member in an international organization must be assigned by the scheme manager in order to provide the member with a steady income for the rest of his life. These factors ensure that the benefits of the pension scheme that a member can get can be in the form a lump sum amount with IHT exemptions.
Apart from the tax angle, there are few more conditions to be met for an overseas scheme to be a QNUPS. The scheme should be made available to the residents of the country in which it is operating. It should be recognized or approved or registered with appropriate tax authorities and should be recognized as a pension scheme within the territory of the operating country.
If you want more information on QNUPS then you can seek the assistance of a professional adviser who is well qualified to guide you on all the aspects of the scheme.