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QNUPS – Pros and Cons

Investing in QNUPS provides several advantages to the investor. The main advantage is to avoid inheritance tax. The only disadvantage of the scheme is that it does not provide any tax relief on the investment made.

The QNUPS scheme introduced by HMRC in February 2010 is advantageous to UK citizens for a number of reasons. The most obvious feature is that by transferring her assets to these offshore funds, an individual can avoid her family bearing the burden of inheritance tax.

There are also several other advantages of investing in QNUPS:

– These pension plans are also an excellent investment option for people planning to retire abroad, as they allow funds to be invested in almost any country in the world, even those with which the UK government does not have dual agreements. imposition.

– Another advantage is that there is no restriction on the type of asset invested. In addition to cash and residential property, some other items of an exotic nature, such as antiques, can be transferred to these schemes to avoid paying IHT.

– There is no maximum limit to the amount of funds or assets that can be transferred to this scheme. This allows the investor to move all his funds to an offshore scheme in case he retires to another country where he can access his funds at any time without paying taxes.

– There is no restriction on the type of income invested in QNUPS. Unlike traditional schemes where only earned income can be invested, income from any source can be invested in this scheme to avoid inheritance tax.

– There is also no restriction on the period for which investments can be made. With previous pension plans, a person had to make all the investments before he retired, since it was considered his main source of income after he retired. However, with this new scheme, a person can make investments or transfer assets even after retirement. This is especially useful in today’s world where, due to increased life expectancy, more than two generations of a family are past retirement age. In such a case, if the elderly person transfers her assets to a QNUPS, she will avoid her retired son having to pay large amounts under the IHT.

– Finally, the funds invested under this scheme can be withdrawn or paid in a currency of the investor’s choice, thus reducing the risks associated with currency conversions.

The only disadvantage that QNUPS has is that it does not provide any tax relief to the investor on the investments made, as is the case with conventional pensions. However, the benefits offered by this scheme far outweigh this disadvantage.

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