Posted by James Pearson on 19 Sep 2012

Inheritance Tax and QNUPS

Although you should always invest in a Qualifying Non-UK Pension Scheme (QNUPS) because it is the right choice to meet your retirement needs, there are also tax benefits attached to the scheme. Having made the decision that a QNUPS is right for you, it would be sensible to make use of these potential savings. One of the most talked about tax features of a QNUPS is that when the beneficiary dies the balance of the fund can be paid out without inheritance tax (IHT) being payable. This is a hugely attractive feature of QNUPS structures, potentially saving tax at up to 40% of the fund value.

If this saving is of interest to you it would be worth your while to be sure that your QNUPS meets the necessary requirements as the legislation does not provide for a blanket inheritance tax exemption for QNUPSs. Instead, the law includes an exemption for QNUPS assets that are held in certain ways immediately prior to death. If the conditions are not met the contents of your QNUPS may be subject to IHT.

Simply contributing to a QNUPS is not enough to guarantee that you will receive all tax advantages inherent in the structure and taking advice from a qualified tax adviser should always be taken.  Tax Innovations has experience at ensuring that the tax advantages of your investment decisions are optimised.


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See also…

Inheritance Tax Relief When Downsizing Your Home

Inheritance Tax: Planning for the Future

Inheritance Tax for Couples with “Mixed” Domiciles

Inheritance Tax on Holiday Lets

Changes to the Taxation of QNUPS

Qualifying Non-UK Pension Schemes (QNUPS)

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