Finance Act 2017 Changed QNUPS Taxation – But We Can Fix The Problem and reduce Taxes on Death After Age 75 too!
A QNUPS (Qualifying Non-UK Pension Scheme) is a super tax efficient vehicle within which investments can be made free from Income tax, capital gains tax and Inheritance Tax – However, the changes made by FA 2017 to ITEPA 2003, s. 573, 574 and 574A mean that anyone with a significant QNUPS fund who die after the age of 75 will land their beneficiaries with a large income tax bill.
This is all part of the gradual shift by HMRC to bring QNUPS rules closer to match those of ‘normal’ pensions.
There is a solution to this tax problem – which allows the QNUPS to continue to generate tax efficient access to both capital and income, at any age, without triggering the new income tax charges.
The solution is relatively simple and makes use of self-invested annuities. If carried out properly, the income tax charge can be fully mitigated. A side benefit of this solution is that the QNUPS owner can also access their retirement income at highly reduced rates of tax. Often as low as 2% – which is a significant benefit.
If you, or your clients have significant QNUPS funds and are concerned about the additional taxes on death after age 75, or indeed the taxes on retirement income – then we will be more than happy to ensure that that they are given access to the proper advice and can reduce/eliminate this increased tax burden.
In an ironic twist, the Tax Legislation that allows this super efficient access to QNUPS funds relates to the insurance industry, and without it companies like AVIVA and Legal & General would not be able to operate…. so this is not some sneaky or high risk ‘loophole’.
With the rate of income tax being reduced during retirement, and removal of this tax on death after the gar of 75 – the QNUPS can once again become one of the most tax efficient planning vehicles available to UK investors.
Paul Stewart (Our MD) is a Pensions Administrator (an official HMRC recognised role). He was also an Examiner for the Chartered Insurance Institute dealing with the exams IFA’s had to pass in order to give advice on …PENSIONS! So if there is anyone who can help guide you, then he can!
Most Advisors, such as IFA’s and Accountants do not have the internal experts to assess a client’s FULL situation – and come up with the best overall strategy.
As I have worked in the pensions and tax planning field for over 30 years, I have personal access to experts in all taxes and can combine these experts into a unique service that really does go beyond what you’d get from your normal ‘Advisors’.
Every wealthy entrepreneur or property investor I have ever met had their own Accountant, Solicitor and Financial Advisor – yet in 90% of cases we were able to dramatically able to improve their overall exposure to UK taxes and access to their pension money.
What is vital is the proper implementation – with care at every stage.
This is why we offer a FREE consultation – as it lets us explore your current situation before jumping in with ‘solutions’.
If you are interested in seeing if your pension can be used to help support your business – then call us now, or send us your details and we will call you back.
We look forward to helping you soon.