EXPAT RETIREMENT PLANNING

QNUPS

What is a QNUPS?

A QNUPS (Qualifying Non-UK Pension Scheme) is very different to the other types of pension schemes (ISIPP, QROPS), given that it is not technically an approved pension scheme. In certain instances, an employer may offer pension benefits to an employee outside of the UK system for tax reasons. These benefits are often built up in QNUPS accounts in Bermuda, Guernsey or Gibraltar.

Who is it for?

Since a QNUPS is built to receive funds from non-UK ‘pensions’, holders of these types of assets could consider a QNUPS scheme. For example, Shell, BP and other large corporations offer bermuda based pots that could be transferred to a QNUPS. These schemes are very niche, and much less common than the rest.

KEY FEATURES

Not a UK pension

Wide investment choice (including property)

Different rules for drawdown

Typically based out of Guernsey

LIMITATIONS

No tax-relief on contributions

Outside of UK regulation

Rules subject to local law changes

Expensive to run compared to ISIPP, QROPS

QNUPS: Our Verdict

If you have a non-approved overseas scheme outside of the UK, then a QNUPS will be a great choice - and indeed your only choice to transfer into!

Since by definition it does not comply with traditional UK pension law, non-approved overseas schemes cannot be transferred into an International SIPP, QROPS or a UK SIPP. This is because they have not received tax-relief on contributions and operate under different rules.

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Just independent & regulated advice.

FAQs

  • A QNUPS is an overseas pension scheme that allows you to invest and grow your retirement savings free of UK capital gains and income tax, and potentially outside of your estate for UK inheritance tax (IHT) purposes.

    • No UK IHT on assets in the QNUPS

    • Wide investment choice (including property, art, etc.)

    • No lifetime allowance limit

    • No UK income or capital gains tax on growth

    • Flexibility in contributions and access

  • No. A QROPS is for transferring UK pensions abroad. A QNUPS is mainly for contributing additional funds and is not limited to existing UK pension transfers.

    • Not tax deductible in the UK

    • Complex rules and setup

    • Limited protection under UK law

    • Must be set up correctly to qualify for IHT benefits

    • Fees can be high

  • No. UK pensions must be transferred into a QROPS, not a QNUPS. However, you can make fresh contributions to a QNUPS from other sources.

  • QNUPS can hold a wide range of assets, including:

    • Stocks and bonds

    • Property

    • Cash

    • Alternative assets (e.g., art, antiques) – depending on the scheme rules

  • No, contributions to a QNUPS are not tax-deductible in the UK.

  • Yes, if set up properly and not seen as a deliberate IHT avoidance scheme, assets in a QNUPS are usually outside the UK estate for IHT purposes.

  • No official limits, but contributions must be reasonable and justifiable in relation to your retirement needs, or HMRC could challenge the IHT exemption.

    • No UK income tax or capital gains tax within the QNUPS

    • Pension income may be taxable depending on where you live

    • Contributions are not tax-relieved

    • Local taxes may apply based on the jurisdiction

  • Yes, depending on the scheme rules and your age. However, early access might affect the pension’s tax treatment or IHT benefits.

After all, it’s your wealth, not ours.