What is a Qualified Non-UK Pension Scheme (QNUPS)? - OCTOPUS
A QNUPS is a Qualified Non-UK Pension Scheme which can receive unlimited contributions subject to an actuarial calculation (there is no lifetime allowance restriction). The pension can be funded from cash or assets/investments transferred in specie.
A QNUPS is more flexible as there is no tax relief on contributions therefore the investment options are more attractive.
Who could benefit from a QNUPS?
- Both domiciled individuals and non-domiciled individuals holding UK situs assets
- Individuals wishing to contribute more than their personal annual allowance of £40,000 will allow into their UK pension (2022/23 annual allowance rate)
- Individuals who have reached their lifetime allowance already (£1,073,100 for 2022/23)
Benefits of a QNUPS
- A cash free lump sum of 30% is possible from the age of 55
- Loans can be made to a member
- Being an overseas pension, the funds would not trigger UK inheritance tax upon death
- There would be no capital gains tax on growth of investments (subject to where/how the investments are held).
What can the pension invest in?
The pension can invest in a wide range of assets providing they are income generating or will grow in capital. Examples include:
- Residential & commercial property (including buy to let properties)
- Bonds, shares (public and private), gilts
- Art, antiques, fine wine, classic cars
For more information, contact phil.cartwright@octopus.gi or by telephone on +350 200 77779.
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Frequently Asked Questions
How does a QNUPS differ from a standard UK pension scheme in terms of contribution limits?
A QNUPS does not have a lifetime allowance restriction on contributions, allowing for unlimited contributions subject to actuarial calculation, unlike standard UK pension schemes which have both annual and lifetime limits.
What types of assets can be transferred in specie to a QNUPS?
Assets and investments, in addition to cash, can be transferred in specie to a QNUPS, allowing for greater flexibility in funding the pension.
Under what circumstances might a QNUPS be suitable for individuals who have already maximized their UK pension allowances?
Individuals who have contributed up to or beyond their UK annual allowance of £40,000 or have reached their lifetime allowance of £1,073,100 may find a QNUPS suitable for making further pension contributions.
How is a QNUPS treated with respect to UK inheritance tax and capital gains tax?
As an overseas pension, funds held in a QNUPS do not trigger UK inheritance tax upon the member’s death, and there is no capital gains tax on growth of investments, subject to the location and nature of the holdings.
What investment options are available within a QNUPS?
A QNUPS can invest in a broad range of assets that are income-generating or capable of capital growth, including property, bonds, shares, gilts, art, antiques, fine wine, and classic cars.
What is the minimum age for taking a lump sum from a QNUPS, and what proportion can typically be withdrawn?
From the age of 55, a member can typically withdraw a lump sum of 30% from their QNUPS.
Is it possible for a QNUPS member to receive a loan from their pension fund?
Yes, loans can be made to a member from their QNUPS.
Written by
Head of Business Development
Experienced and motivated individual with a demonstrated history of working in the financial services industry in Gibraltar for 26 years. I structure high net worth individuals' wealth using a vast array of worldwide contacts in addition to managing their trusts, companies, funds, QROPS and QNUPS from Gibraltar. I have been involved in many property holding structures working with many different tax advisors throughout my career. I specialise in setting up Gibraltar businesses and provide advice on relocation and residency in Gibraltar.
