subject: Planning Taxes With Qnups [print this page] Planning an offshore retirement has been made easy with QNUPS. For anyone with a UK pension, retiring overseas has been more of a headache with the host of UK tax regulations. Even with the protection offered by schemes like QROPS, the assets of the expats domiciled in UK were subject to the UK inheritance tax. QNUPS or Qualifying Non UK Pension Schemes were introduced by the HMRC to provide opportunities to the British expats to plan their taxes better and to get exemption from local taxes as well as the IHT.
By investing in QNUPS, the expats can make sure that their lifelong income and amassed wealth will be passed on their family members free from tax deductions. These schemes come with a host of additional benefits which help the retirees plan their taxes efficiently. Firstly, while you can start putting money into the scheme as early as when you are 18 years old, with no maximum age limit you can continue to invest in the scheme even after retirement as long as you want. Unlike other pension schemes, the amount you invest is not limited to what you earn through employment only. Instead you can invest funds obtained from any source and also use the scheme to protect valuable possessions. Moreover, with no maximum limit on the investment you can keep on adding to your asset and create a huge legacy which can be passed on to your beneficiaries.
Besides being exempted from IHT, QNUPS also offers protection to your asset from local death taxes, succession laws as well as wealth taxes. Hence, your investment can grow free from taxes and can even be inherited in full. These schemes not only enable full control over your assets, but by avoiding local succession laws, they ensure that you shall choose who would inherit your assets. With the government announcing a rise in the rate of capital gains tax, the higher rate taxpayers can now invest and grow their assets and pass it on to their heirs without any tax cuts.
Like any other pension scheme, you can obtain an income from QNUPS too. You can draw this income once you reach the age of 55, before which you can take small loans from your savings. While you can continue investing for life, you can also take out a lump sum from your savings, the remainder of which would be transferred to your beneficiaries in the event of your death. The HMRC also offers certain flexibilities which allow retirees over the age of 80 to invest in bulk amounts and create tax efficient advantages for their family members and themselves.
by: QROPS
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