A Qualifying Non-UK Pension Scheme (QNUPS) is an overseas
pension scheme in which cash and assets that are not eligible for
UK tax relief can be contributed. QNUPS regulations were introduced
by UK HM Revenue & Customs (HMRC) on 15th February 2010. The
creation of the QNUPS legislation has provided significant
investment and savings opportunities for British nationals, whether
they are expats or still residents of the UK.
A QNUPS offers an excellent vehicle to top up the overall amount
of assets and capital that needs to be set aside for a comfortable
retirement, as many individuals do not have enough capital within
their existing pension scheme to provide them with the level of
income they will require in retirement. If you're thinking of
transferring your pension to a QNUPS, an actuary will help you
establish the level of retirement benefits required to sustain your
standard of living in retirement. Based on that information, a
sensible funding level of contributions to the QNUPS can be settled
with your financial adviser.
QNUPS can offer some great benefits, especially concerning the
extraction of wealth in a tax-efficient manner, which is usually
the most difficult issue to solve.
The key points of a Qualifying Non-UK Pension Scheme:
- Depending on your circumstances, it may be possible to
contribute to a QNUPS after you have retired.
- The pension fund can be used by the member during his lifetime
and any remaining balance can be passed on to their chosen heirs
upon the member's death.
- You do not need to have any earned income from employment in
order to make a contribution.
- There is no maximum contribution that can be made into a QNUPS
- as long as it is sensible to one's standard of living. For
this reason, the approval of an actuary may be needed.
As a full member of the European Union, Malta is one of the
deVere Group's preferred jurisdictions for QNUPS for a number
- Malta has been a successful full member of EU since 2004
- Pension administrators in Malta are all fully licensed in line
with HMRC requirements
- Malta has met full IFRS standards since 1997
- Malta has a reputable comprehensive, legislative and regulatory
framework through the Malta
- Financial Conduct Authority.
- Malta has a sophisticated ICT infrastructure in place
- Malta offers investor protection through a vast tax treaty
network with over 59 Double Tax Treaties at the time of
Furthermore, Malta is a member of the following bodies:
- International Organisation of Securities Commission
- International Association of Insurance Supervisors
- European Banking Authority
- European Insurance & Occupational Pensions Authority
- European Securities Marketing Authority
Who can benefit from a QNUPS?
Both UK residents and non-UK residents who still maintain a UK
inheritance Tax (IHT) exposure can benefit for a QNUPS.
With UK retirement rates being at near-record lows, even
individuals who have a fully-funded UK pension in line with the
current Lifetime Allowance limit (£1.5 million) can find that
their retirement pot is not enough for them to maintain their
lifestyle after they stop working. A QNUPS therefore creates an
ideal vehicle to build an individual's retirement provisions,
in a way that matches their retirement income expectations.
Since QNUPS are not subject to lifetime allowance limits there
will not be the same severe tax penalties that a UK resident will
suffer should they fund their UK registered schemes over the
lifetime allowance limit.
A QNUPS can also benefit people who travel frequently from one
country to another and live and work in different locations for
long periods of time. Instead of creating a pension plan that has
to be funded in one country only, a QNUPS will serve as a fully
international retirement plan that can be contributed to and
accessed no matter where the individual resides.
While both UK residents and expats creating a QNUPS should do so
for retirement provisions, any funds that remain in the QNUPS on
death do not attract a UK IHT charge and can be passed to
beneficiaries of the member's choice rather than being
distributed in accordance with their will.
Visit the deVere Group -
QNUPS page to find out more.