|
A new UK HM Revenue & Customs (HMRC) statutory instrument
came into force on 15 February 2010 providing significant
opportunities for British expatriates to save on local taxes in the
country in which they are tax resident, as well as on UK
inheritance tax (IHT).
Authorities often rely on pension schemes to incentivise
citizens to save for their retirement. These incentives may come in
the form of tax efficiencies, reliefs and exemptions. This means
that the overall tax rules are generally more favourable than other
tax efficient structures.
QNUPS are available for both working and
retired expatriates and crucially, the scheme solves different
problems and offers different opportunities for both sets of
people.
The problem for most retired expatriates is that they believe
that their days of being able to put money into pension schemes are
behind them. However, QNUPS may significantly change many retired
expatriates view on this as many working expatriates often aren't
able to contribute into a tax relievable structure.
QNUPS can offer some great benefits, especially
the extraction of wealth in a tax efficient manner which is usually
the most difficult issue to solve.,/p>
The key points of a Qualifying Non-UK Pension
Schemes:
- There is no maximum age at which you can invest in a
QNUPS.
- You do not need to have any earned income from employment in
order to make a contribution.
- There is no maximum contribution that can be made into a
QNUPS.
The rules are sufficiently flexible to allow someone who is 85
years of age and has been retired for 25 years to put large
investments into a QNUPS and immediately create significant tax
advantages for themselves. In addition, with a QNUPS you are
entitled to take your lump sum as you would with any other pension
scheme, however, you may also accumulate your fund by investing
regularly into it throughout your retirement. Upon your death the
remainder of your fund will be passed on to your beneficiaries free
from inheritance tax.
|
