- It's never too late (Non-Habitual Residence (NHR)) - Published Oct 2018 by Raoul Ruiz Martinez
- Are You on Top of GDPR? - Published May 2018 by Raoul Ruiz Martinez
- Financial Fitness - Published Jan 2018 by Raoul Ruiz Martinez
- Six Tough Questions You Need to Ask - Published in Nov 2017 by Raoul Ruiz Martinez
- Plan for a Successful Retirement - Published Oct 2017 by Raoul Ruiz Martinez
- 5-year Plan, 10-year Plan, 30-Year Plan. Do you have yours? - Published August 2017 by Raoul Ruiz Martinez
- The Will Bank Opportunity by John L Douglas - Published in The Journal of the Law Society of Scotland 17th July 2017
- August 2017 - HMRC & Offshore Accounts for UK Residents
- A New Year, A New Start…. January 2017
- Inheritance Tax (IHT) Planning (Part 3) - Published November 2016
- Planning for a Better Future? Forget Trusts. Think Family Investment Companies! - Published Nov 16
- Inheritance Tax Planning (Part 2) - Published August 2016
- BREXIT: What do we know as investors and what are the unknowns? Published in July 2016
- Inheritance Tax Planning (Part 1) - Published in June 2016
- Why is tidy a key word in financial planning? Published May 2016
- The Future of International Financial Planning - Published in March 2016
- Volatility: Global Financial Markets and Tax - Published Feburary 2016
- Financial Information Sharing for 2016 - Published December 2015
Summary of the 2015 Pension Flexibility - Published 5th May 2015
Offshore bonds get £5k tax free savings boost - Published 29th April 2015
How your peers invest clients’ money: Finesco Financial Services Ltd - Published in Professional Advisor 25th March 2015
- TRUSTS : Good Reasons to Never Make a Change - Published March 2015
- Saving....for Ourselves - Today's children will need A £2.4m pension pot.
- Cash is King - Article Published 25th July 2013
- Saving – Don’t Put Off Till Tomorrow What You Can Do Today - Article Published 23rd May 2013
HMRC Statutory Residence Test - 6th April 2013
- QNUPS Article Published 23rd March 2013
- Old New Year - Article Published 24th January 2013
- Retirement and Savings – The Facts on Inflation published November 2012
- Finesco Prsentation on New Pension Rules - A New Generation Begins
HMRC Pension Tax Relief Changes
- Emergency Budget:
- Budget Day: 22 June 2010
- Capital Gains Tax Angles
- Long Term Care
- QROPS: Transferring UK Pensions Overseas
- The State of Pensions
- ISA Changes Affecting You



QNUPS Article Published 23rd March 2013
To read the published article by Raoul Ruiz Martinez; The_Portugal_News_-_Business_Article_23rd_March_2013.pdf
QNUPS – Qualifying Non-UK Pension Schemes - came into existence in February 2010 but were overshadowed by the overhaul of the legislation on QROPS - Qualified Recognised Overseas Pension Schemes - by HMRC last year.
An omission in the original QROPS legislation of 2006 meant such overseas pensions could have been subject to IHT, which is not the case with UK pensions. So in February 2010, HMRC rectified this in law which provided for the creation of IHT-exempt overseas pensions, in the form of QNUPS. The statutory instrument defined that all QROPS are also QNUPS, that is to say they benefit from the IHT exemption.
Essentially, not all QNUPS need be QROPS. To put it in context, two identical pension schemes could be established outside the UK. One is registered with HMRC and therefore becomes a QROPS; the other is not, but by virtue of it being a qualifying pension as defined by UK law, is free of all the reporting requirements to which QROPS are subject.
QNUPS were therefore effectively an entirely new structure, enshrined in and fully protected by UK law. Just as importantly, they possess certain unique features that created significant planning opportunities for clients in the right circumstances.
QNUPS are suitable for UK tax residents and non-UK tax residents. For the former, it is normally recommended that those considered high net worth or ultra-high net worth are really suitable for QNUPS. For them to consider QNUPS and they may have used up - or be likely to use up - their UK tax-relieved pension lifetime allowance, which falls from £1.8m to £1.5m from 2012, or they may already be using their full £50,000 annual tax-relieved pension contribution allowance.
Foremost among QNUPS’ attractions is that any assets placed in them are generally immediately 100% IHT-free. This differs from a UK pension, where, if death benefits are paid from any company or personal pension after tax free cash has been taken, although there is no IHT, a 55% tax applies on death.
It should be taken into account that there is always the possibility of HMRC challenge, if it felt that the scheme has been used, for example, as death bed planning or clear IHT avoidance. However, it also important to note that there is no penalty charge for this and the individual would just be returned back to where they were (less fees) if they had not contributed to the QNUPS. Therefore it is paramount that each individual's circumstance must be analysed by a professional and qualified adviser.
QNUPS must be used as a pension, and any contributions must be appropriate and proportionate to their personal situation. Some people have questioned how £500,000 or more can be considered a valid pension contribution and commentators suggested that this is simply too much money. However, with UK registered executive pension schemes this would be considered only a medium sized contribution and for some older schemes it would have been considered a small contribution. So this is clearly not a valid concern and what constitutes an appropriate contribution depends on an individual’s wealth and personal circumstances.
You certainly cannot put everything you own into a QNUPS because you need to retain enough funds on which you can live comfortably, although governments are pressing for everyone to make substantial improvements to personal pension planning to reduce reliance on public support in retirement.
Any scheme such as a QNUPS or international pension plan can invest in almost any asset which includes private shares, residential property or event art, although if an income stream is required then it is the assets that can generate a steady and liquid return at retirement. Portugal has some very generous tax breaks on pension income and if the jurisdiction where the QNUPS is held allows for the income to be distributed gross, then you may also benefit from the Non-Habitual Residence status to receive pension income free of tax in Portugal if you qualify.
This article is intended to provide a general review of certain topics and its purpose is to inform but NOT to recommend or support any specific investments or course of action.
Raoul Ruiz Martinez is a resident and independent consultant for Finesco Financial Services Ltd., Glasgow and advises private clients on financial investments in both the UK and throughout Europe under MiFID regulation. He can be contacted at the offices of euroFINESCOs.a. either by telephone on 289 561 333 or on email Raoul.Ruiz@Finesco.com.
Finesco Financial Services Ltd is authorised and regulated by the Financial Services Authority (FSA). Some of the services provided are not regulated by the FSA because they are not included within the Financial Services and Markets Act 2000.
Raoul also has regular radio appearances with Raoul's Rant on the Owen Gee Solid Gold Sunday show and the Money Minute on the Kiss FM Breakfast show from Tuesday to Thursday between 11 and 12.
The_Portugal_News_-_Business_Article_23rd_March_2013.pdf