International Pensions


International Pensions in UK like QNUPS are a natural progression from QROPS for those who wish to increase their investment options, but they benefit all wealthy individuals regardless of their location. 

QNUPS can invest in just about anything, including real estate right now. Pension funds, therefore, can become life-changing assets that can be leveraged in a variety of ways when they are immediately transformed from old, staid UK pension funds.

What is a QNUPs?

QNUPS stands for 'Qualifying Non-UK Pension Scheme', which is designed for pensions and income taken outside the UK. QNUPS can be used by UK residents as well, since they are a legal way to avoid inheritance tax (IHT).

When it comes to QNUPS, HMRC has specific criteria for overseas pensions to qualify as "qualifying", and not subject to IHT. Schemes must be based overseas and, critically, not in countries with which the United Kingdom has signed Double Taxation Agreements.

This international pension in UK can invest in just about anything, including real estate right now. Pension funds, therefore, can become life-changing assets that can be leveraged in a variety of ways when they are immediately transformed from old, staid UK pension funds.

What is a ROPS?

Among the international pensions in UK is the 'Recognition of Overseas Pension Scheme'. This is similar to Qualifying Non-UK Pension Scheme in that it also applies to UK residents as a means of avoiding inheritance tax (IHT) legally. Furthermore, they can also be used in other ways by expats in the UK who wish to leave the UK one day and take their pension earnings with them to their home country without the tax burden of the UK schemes. Investing in ROPS is not tax deductible, however.

Benefits

A key benefit is the ability to purchase residential or commercial property. You may either live in the house or rent it out with your pension fund.

Another benefit is that high earners will be able to make fully tax-free pension contributions in the UK due to recent legislative changes. As a result, QNUPS will become a very attractive option for wealthier clients because you can save large sums of money for your retirement without being constrained by UK pension regulations.

Because QNUPS do not benefit from tax breaks on the "way in", there is no maximum lifetime contribution limit. This can be a huge benefit for IHT planning.

QNUPS allows you to contribute to your scheme for as long as you want, at any age. Normal pension schemes only provide tax relief and exemptions for money earned in employment.