HIGH NET WORTH UK RESIDENT OR DOMICILED INDIVIDUALS

High earners in the UK will soon have limitations on the extent to which they can make fully tax relieved pension contributions. The new UK provisions in this regard are incredibly complex and are being introduced as the highest rate of income tax on earned income rises to fifty percent. However, a UK resident can instead pay into a QNUPS. We think this will become an attractive option for high earners.

QROPS

QNUPS will also be a suitable long term home for UK tax relieved funds that have transferred into a QROPS. This is becasue a QNUPS need have no investment restrictions and so can for example invest in residential property.

However, its is only non investment regulated QROPS that can transfer to a QNUPS otherwise there will be a fifty five percent unauthorised payment charge. So to migrate funds from an investment regulated QROPS to a QNUPS the process must first involve a transfer from the investment regulated QROPS to a non investment regulated QROPS.

For a comparion of the difference between a UK pension schemes and a typical QNUPS see the next page.