Some of you will may well have heard of offshore pensions such as QROPS but not so many will know about QNUPS (qualifying non-UK pension schemes). This is a great investment option for those Expats who have capital to invest and are looking to use this to eventually generate an income stream. This income will be taxed locally in your country of residence (so, for example, if you live in Portugal under the Non Habitual Residency Scheme you will be taxed at 0% for 10 years). The added benefit is that your QNUPS will save you a nice slice of UK IHT.
You see any investment in QNUPS is disregarded from your estate for UK IHT purposes so a £1M investment reduces the tax liability on your estate by £400,000 (assuming your estate is over the nil rate band) and under current rules the tax benefit stays with your estate even if you were to return to the UK.
Talk to our experts who will help you use your capital to its maximum advantage.