EXPAT RETIREMENT PLANNINGQNUPS
What is a QNUPS?
(Qualifying Non-UK Pension Scheme)
A QNUPS is very different to the other types of pension schemes (ISIPP, QROPS), given that it is not technically an approved pension scheme. In certain instances, an employer may offer pension benefits to an employee outside of the UK system for tax reasons. These benefits are often built up in QNUPS accounts in Bermuda, Guernsey or Gibraltar.
A QNUPS is a pot of money built up for retirement that remains outside of the UK system and out of the traditional reach of HMRC. Because of this, QNUPS have certain benefits that are not applicable to UK schemes, such as the age of access, the ability to take a larger pension commencement lump sum as well as the wide and less regulated investment options.
Who is it for?
Since a QNUPS is built to receive funds from non-UK ‘pensions’, holders of these types of assets could consider a QNUPS scheme. For example, Shell, BP and other large corporations offer bermuda based pots that could be transferred to a QNUPS.
These schemes are very niche, and much less common than the rest.
KEY FEATURESNot a UK pension
Wide investment choice (including property)
Different rules for drawdown
Typically based out of Guernsey
LIMITATIONSNo tax-relief on contributions
Outside of UK regulation
Rules subject to local law changes
Expensive to run compared to ISIPP, QROPS
Our Verdict
If you have a non-approved overseas scheme outside of the UK, then a QNUPS will be a great choice - and indeed your only choice to transfer into!
Since by definition it does not comply with traditional UK pension law, non-approved overseas schemes cannot be transferred into an International SIPP, QROPS or a UK SIPP. This is because they have not received tax-relief on contributions and operate under different rules.
