A Qualifying Non-UK Pension Scheme (QNUPS) offers an excellent vehicle to top up the overall amount of assets and capital that needs to be set aside for a comfortable retirement, as many individuals do not have enough capital within their existing pension scheme to provide them with the level of income they will require in retirement. If you're thinking of transferring your pension to a QNUPS, an actuary will help you establish the level of retirement benefits required to sustain your standard of living in retirement. Based on that information, a sensible funding level of contributions to the QNUPS can be settled with your financial adviser.
The key points of a Qualifying Non-UK Pension Scheme:
As a full member of the European Union, Malta is one of our preferred jurisdictions for QNUPS for a number of reasons:
Furthermore, Malta is a member of the following bodies:
Who can benefit from a QNUPS?
Both UK residents and non-UK residents who still maintain a UK inheritance Tax (IHT) exposure can benefit for a QNUPS.
With UK retirement rates being at near-record lows, even individuals who have a fully-funded UK pension in line with the current Lifetime Allowance limit (£1.5 million) can find that their retirement pot is not enough for them to maintain their lifestyle after they stop working. A QNUPS therefore creates an ideal vehicle to build an individual's retirement provisions, in a way that matches their retirement income expectations.
Since QNUPS are not subject to lifetime allowance limits there will not be the same severe tax penalties that a UK resident will suffer should they fund their UK registered schemes over the lifetime allowance limit.
A QNUPS can also benefit people who travel frequently from one country to another and live and work in different locations for long periods of time. Instead of creating a pension plan that has to be funded in one country only, a QNUPS will serve as a fully international retirement plan that can be contributed to and accessed no matter where the individual resides.
While both UK residents and expats creating a QNUPS should do so for retirement provisions, any funds that remain in the QNUPS on death do not attract a UK IHT charge and can be passed to beneficiaries of the member's choice rather than being distributed in accordance with their will.
To find out more about QNUPS, contact Acuma Hong Kong today.