Five things you need to know about Qnups
By , 10 Jul 17
For years, qualifying non-UK pension schemes (Qnups) have been seen as a niche product relegated to the realms of ‘aggressive tax planning’, says Martin Hall, director of Isle of Man-based pension provider Optimus. Here he reveals five reasons why it’s time for advisers to re-evaluate their position.
Members of Qnups pay income tax when they receive benefits, exactly like members of registered pension schemes. There is a tax-free element to the benefits, of course, but so is there with a registered pension scheme. UK registered schemes are intentionally tax preferred through a system of tax relief on contributions.
Qnups cannot get tax relief on contributions but just like a registered scheme does not suffer IHT on death of the member. All-in-all, both serve a similar purpose but a Qnups member will pay a little more tax. Only fair.
