subject: Qnups- Choosing The Best [print this page] It is not easy to build assets during a life time and once having done that, it becomes even more difficult to know that a part of them will go away to the tax authorities after your demise. UK inheritance tax laws made retirement planning very difficult for those who owned large homes and estates. In recent years the spiraling prices of real estate have meant that even the common man needs to think and worry about Inheritance tax rules. The recent launch of the QNUPS scheme by the UK government in February 2010 has opened up a window of opportunity for everyone who wants to do smart investments, efficient tax planning and save and build a retirement corpus. The new scheme is a great option but its planning is complex and cumbersome.
Some of things to look for while opting for a QNUPS are as under:
Understand the QNUPS through research or deploying the services of a consultant
Make sure that the scheme of your choice is legitimate and meets the qualifying criterion.
Ensure that in your chosen scheme the IHT benefit or the exemption from Inheritance tax benefit is immediate upon transfer of asset.
What to transfer and what not to transfer to the QNUPS must be planned in advance based your financial goals.
Ensure that you understand the taxation benefits on the growth of your funds in the scheme are CGT exempt too.
Offshore residents can even allow denominating their QNUPS in any currency of their choice and not necessarily the GBP or EURO. This helps manage currency based volatilities as well.
It should be a great investment tool and the assets and funds there should grow and not stagnate in returns.
Most plans allow for withdrawals from the age of 55 but they also allow for taking loans against deposits in the scheme
QNUPS should not be based in a country which has signed the DTA with the United Kingdom.
The fees and charges of the pension schemes should commensurate with the returns they offer and the amounts the investor chooses to contribute.
QNUPS is becoming an investment option of choice among UK domiciled individuals who wish to leave behind their assets for the welfare of their families long after they pass on to the next world.
