QNUPS QNUPS - Expat QNUPS Pension Transfer

A QNUPS is a Qualifying Non UK Pension Scheme.  

A QNUPS transfer is the transfer of pension rights for an expat held in the UK to an approved pension scheme overseas. 

QNUPS rules were introduced in February 2010 to fix an error in original QROPS laws. Under older rules international pension transfers to a QROPS were liable to UK inheritance taxes on death.

QNUPS Differences to QROPS:

  • QNUPS rules have no requirement for the QNUPS provider to provider ongoing reports to HMRC that the international pension transfer has not breached UK pension rules before, during or after retirement.
  • There is no requirement for a double taxation agreement (DTA) to be in place if the QNUPS is based outside the European Economic Area (EEA).
  • QNUPS providers have no 5 year requirement to report to HMRC when benefits are taken confirming that UK pension rules are complied with.
  • This means that many QNUPS providers may potentially allow UK transferred in pension schemes to invest in wines, antiques and residential property that are not normally available to QROPS or UK pension funds.

QNUPS for Expats Key Points:

  • All QNUPS are QROPS but not all QROPS are QNUPS
  • The rules regarding QNUPS for expats are wider than QROPS.
  • QNUPS can pay the whole pension fund out on death inheritance tax free, if local rules allow. 
  • QNUPS can be set up to avoid local laws on inheritance tax by the expat a choice on benefices on death
  • No age restriction on an expat having a QNUPS or when transferring to QNUPS
  • QNUPS can be set up in such a way that avoids local wealth and death taxes

For more advice on QNUPS pension contact our team.