Wednesday, 15 September 2010



QNUPS – Qualifying Non-UK Pension Schemes

Oh no – not another acronym!

  • Who will most benefit?

  • Remember that QNUPS is a Pension Scheme

  • Ideal for In-Specie Transfers


Firstly I think the technical description. The Inheritance Tax (Qualifying Non-UK Pension Schemes) Regulations 2010 [S1 2010/0511] have introduced this acronym ‘QNUPS’. Weblink gets you to the precise Statutory Instrument (SI).


I have just read an article by a leading International Financial Adviser (that’s their description not mine) which contains inaccurate information. So very much like QROPS, with QNUPS you need advice from the right source. I can provide you access to a professional adviser, if you email me.

In short, earlier this year HMRC confirmed that contributions to a Qualifying Non-UK Pension Scheme, would be exempt from UK IHT. What this means is that as long as the pension walks and talks like a pension, then the assets held in it will be protected from UK IHT.

This is not meant to be an exhaustive list, but I believe there are four categories of individuals who will most benefit from or should consider a QNUPS;

  • Any UK resident who from 6th April 2010 will be restricted on their UK pension contributions to basic rate tax relief.
  • UK domiciled persons (that includes many UK citizens who have become Spanish residents), and UK residents who want to make pension contributions beyond the UK maximum limits.
  • UK non-residents, including Spanish residents who already have a QROPS but want to add to their pension funds.
  • Any UK resident or domiciled individual who wishes to build up a pension fund in excess of the current lifetime limit


In my article on QROPS Week – Day five, I particularly dealt with the subject of In-Specie transfers.


QNUPS provides an excellent opportunity for in-specie transfers. Investments you have built up, properties you own and other revenue producing assets can just as easily be a pension contribution. The investment does not have to be cash but cash is not excluded. Remember that the QNUPS has to be a Pension Scheme but it is also a plan to defend assets from Inheritance Tax (IHT).

If any adviser suggests selling your assets and buying another financial structure beware. In-Specie Transfers offer a much more cost effective route, normally, and also selling assets can lead to a tax charge (eg Capital Gains Tax). To avoid this pitfall please speak to a recommended adviser. Please email me for details.


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If you have your own question, I’d be delighted to answer it. Those of you who live in Spain or intend to live in Spain should be very careful when choosing an adviser. Any adviser can advertise on the internet or in a newspaper but that does not guarantee that they are properly authorised and regulated.

You can write to me with your personal experiences or to be put in touch with my recommended adviser by sending me an email