This pension plan is very attractive for those who have left their homeland and retired in foreign soil. There are substantial savings to be made in transferring pension plans. However, a pensioner must know what they are doing in order to take full advantage of the scheme.
In order to become better acquainted with QNUPS, a British expatriate should read a detailed QNUPS guide. This guide will reveal the advantages offered by transferring a pension fund to a Qualifying Non-UK Pension Scheme. For example, a guide can reveal how a retiree can continue investing in their pension plan past the age of 65. It will also cover the tax incentives for investing in a Qualifying Non-UK Pension Scheme. By carefully studying such a guide, a pensioner can make substantial tax savings and enjoy a comfortable retirement. In addition, the Qualifying Non-UK Pension Scheme offers savings in estate taxes, which helps out relatives who inherit a pensioner’s estate. Qualifying Non-UK Pension Scheme also provides a mechanism for pensioners to avoid paying taxes on their retirement in their new country of residence. This can provide tax advantages in certain countries. A guide can reveal exactly what savings are possible based on the expatriate’s country of residence. This can help them decide whether or not this scheme is right for them.
A closely related retirement scheme is the Qualifying Recognized Overseas Pension Scheme, or QROPS. A QROPS is a pension scheme that allows expatriates to transfer existing pension funds to an overseas pension plan. This is particularly useful for expatriates with significant pension funds. Until the introduction of the Qualifying Recognized Overseas Pension Scheme in 2006, British expatriates had to pay substantial taxes to transfer pension funds. Now, these penalties are reduced through the use of a Qualifying Recognized Overseas Pension Scheme.
Any British expatriate can transfer their retirement funds to a Qualifying Recognized Overseas Pension Scheme, and there is no minimum transfer amount. However, economists estimate that a minimum amount of 25,000 GBP must be transferred for the savings to be worthwhile. Should a British expatriate return to the United Kingdom temporarily, the Qualifying Recognized Overseas Pension Scheme is unaffected.
However, if the expatriate returns to the United Kingdom, works, and deposits money in the Qualifying Recognized Overseas Pension Scheme, then it is subject to British taxes and regulations. This is important for those who may work from time to time in the United Kingdom, but have already expatriated to foreign soil.
When used in conjunction with a Qualifying Non-UK Pension Scheme, the Qualifying Recognized Overseas Pension Scheme allows British expatriates to save a great deal of money on taxes. They can also continue investing past the normal limit, allowing them to delay retirement in return for greater future wealth. A pensioner can also avoid paying additional taxes in their country of residence, which can lead to high retention of income. All of these factors make these pension schemes very attractive to expatriates of the United Kingdom. By carefully studying a QNUPS guide, an expatriate can determine how best to plan for their future retirement.