5:35 PMQNUPS secret
QNUPS secret escaping
Inheritance Tax is a duty that is charged when somebody passes away – The value of their estate and belongings are calculated, and any amounts above the current thresholds are taxed at 40%. The current threshold in the UK is £325,000 as of March 2014. Many people have objections to inheritance tax, and more and more people are trying to find ways to (legally) avoid paying so much tax upon their death. Moving assets offshore is a popular way to avoid inheritance tax, and thanks to the Qualifying Non-UK pension scheme, people are now permitted full flexibility and control over their assets to do what they want with them – This includes exporting them offshore.
Benefits of escaping inheritance tax
There are a multitude of benefits that arise from transferring funds out of the UK, and the QNUPS has made it a lot easier to move funds into HMRC approved trusts in popular jurisdictions such as Guernsey and the Isle of Man. These destinations fall into the overseas pension rules structure and give the following benefits;
The HMRC inheritance tax act of 2008 states that;
“A QNUPS is a form of Overseas Trust which qualifies as a pension for UK Tax purposes and it is afforded special IHT treatments”
This QNUPS secret escaping inheritance tax guide has so far documented some of the benefits of moving funds offshore. There is one important exception to the above points that you should be aware of. This exception refers to owner-occupied residential property, and it’s important to remember that the QNUPS secret to escaping inheritance tax is mainly based upon offshore pension legislation rather than residential property. Participants with residential property will need to ensure they are taking a regular income from the assets in question before they reach the age or 70. All asset transactions should be completed before age 70 with as much time to spare as possible.
Thanks to legislation from the UK government, there is no need to receive approval from HMRC before embanking with QNUPS, and transfers to a QNUPS are not monitored. The 2008 Finance Act and the 2010 Inheritance regulations gave clarification of UK inheritance tax treatment, and allowed for easier transfer of funds. The base of these laws all centre around the EU legislation that looks at the transfer of capital across borders, allowing people to move money more freely between different countries. The QNUPS provides a wide range of benefits, and those looking to avoid inheritance tax are advised that the QNUPS may be an excellent idea to ensure 100% of your assets are kept by your beneficiaries rather than given to the state as part of the 40% inheritance tax. A subject that is related to QNUPs is QROPS although the two should not be confused.
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