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Q. How does an overseas scheme become recognised as a QNUPS?
A. To have an overseas pension plan classed as QNUPS some important requirements must be met. The statutory instrument 2010/501 has a clear layout of these requirements, however you will find that the rules are the same as for the QROPS, with a few small differences.

The biggest difference is that a QNUPS does not have to be registered with HMRC, which means no reports will have to be made regarding payments or benefits given to the holder.

Q. How does a QNUPS differ from a QROPS?

A. A QROPS is designed to accept transfers of UK pensions that received tax relief when the contributions to the UK schemes. These funds are then earmarked as “UK tax relieved” funds and because they have received tax relief the QROPS must follow straight criteria in how the funds are invested and ultimately distributed to the Member. In addition any benefits paid to a member must be reported to HMRC for a period of 10 years from when the QROPS is set up. A QNUPS on the other hand is a scheme that accepts additional contributions from individuals to top up their existing pension provisions. As these contributions come from capital that would have already be subject to tax (ordinarily in the form of Income Tax) the rules governing the administration, Investment and distribution of the plan are far more flexible. QNUPS are not reportable to HMRC and the rules of the jurisdiction where the QNUPS is based are followed rather than UK pension rules, this generally leads to a greater degree of flexibility than a pension scheme set up in the UK would offer.

Q. Can I avoid inheritance tax without a QNUPS?
A.UK Inheritance tax (IHT) is typically applied to the estate of any British domiciled individual. Whilst a QNUPS offers immediate UK Inheritance tax relief, on assets within the QNUPS, it is not the only Trust-based structure that can mitigate UK inheritance tax. The deVere Group offers a wide range of structures that may help reduce your UK Inheritance Tax liability on death. For more information please speak to a deVere Financial Advisor.

To find out more about more about inheritance tax in the context of a QNUPS, please visit our inheritance tax page.

Q. How can I get a QNUPS?
A. The deVere Group is the largest independent international group of financial consultancies with offices in more than 40 locations globally. We primarily deal with expats and high net worth individuals who want our help in planning their finances. We can help you get the right QNUPS deal for your circumstances and assist you in your choices for investment within the scheme.

Q. Are there restrictions with a QNUPS?
A. Although a QNUPS has advantageous IHT treatment, the main purpose must be for retirement provision and not for any form of tax avoidance. Whilst there is no prescribed maximum limit that can be contributed to a QNUPS, contributions made must be justifiable to sustain current standards of living through to retirement.  Each individual’s retirement needs are different and as such for large contribution an actuary may need to agree to the level of contribution.

A member of a QNUPS should be in good health when the QNUPS is set up - any potential limitations to life, including old age, will significantly affect their ability to create a QNUPS without it being seen as tax avoidance by the UK courts.

Finally, a QNUPS is an irrevocable arrangement meaning that it cannot be collapsed by the member. Therefore, members should only contribute capital that they are willing to be locked away and cannot access other than in accordance with the pension rules in the country in which the QNUPS is established. Typically, access to funds from a QNUPS is limited to a 30% pension commencement lump sum and income in-line with GAD limits.

If you would like one of our experienced financial advisers to contact you regarding any questions you may have, please contact us.




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