subject: Qnups And Taxes [print this page] Over and over again, the Qualifying Non UK Pension Scheme, better known as the QNUPS is referred to as one of the most efficient tax-saving offshore pension schemes. Introduced in February, 2010, the QNUPS was declared to be exempted from the UK Inheritance Tax. Moreover, unlike the QROPS, it is free from the rigors of the DTA or the Double Taxation Agreement. Hence, when you opt for the QNUPS, you are not supposed to report any dealing with the HMRC (Her Majestys Revenue and Customs).
Inheritance tax is a tax that is paid after the death of a person. It is levied on the assets or the value of material goods possessed by the person who has died. In the context of the UK, possessions in the hold of IHT include:
All the assets of the person who has died; assets here is a comprehensive term to take account of real estates, personal estates and all the small-value items belonging to the deceased person.
Gifts that the deceased had made in seven years prior to death.
Certain assets which may not be owned by the person who died but which are affected by the demise.
Gifts which have the reservation of benefit.
It has long been a sore to the citizens of Britain and it is often considered to be a form of injustice to all the hard-earned money and the investment in properties that have taken a lifetime. Thus, the QNUPS indeed came as a relief to the people.
No sooner is your cash transferred or your assets contributed, than QNUPS protects your funds from the Inheritance Tax. It is free from any kind of Capital Gain Tax or any other taxes; that is why, you are saved from the grip of rising rate of taxation once you avail the scheme. Therefore, the scheme is a favorite among British expats. It is also well-liked by retirees because it enables them to keep putting in money in their retirement funds without any trouble while they can simultaneously plan their finances effectively.
QNUPS has other tax benefits as well. Not only is the IHT warded off, many local taxes, succession taxes and succession laws can also be evaded with the help of this plan. Thus, while you leave your assets for your heirs, you do not leave the extra burden of taxes on them.
by: QROPS
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