Difference Between QROPS And QNUPS

Both QROPS and QNUPS has been the common topic of discussion in the investment communities which are dealing with Pension and Offshore Investment. But, there may be similarities as well as differences between QROPS and QNUPS but to find out what are the differences, we have to dig into the matter.

This can be a little confusing to those who are not totally accustomed with the two. The term QNUPS refers to large conglomeration of overseas or Offshore Pension schemes. These pension schemes not only meets the criteria of HMRC but also exempted from Inheritance Tax. QROPS are specific foreign Retirement scheme which is a part of QNUPS. QROPS is applicable for people who live abroad while the other scheme is for those who reside in the UK itself. The qualification criteria for any scheme to be a part of QROPS is very strict compared to the other. The primary criterion of a QROPS is that it can only operate in countries which have double taxation agreement with the UK. This is done because QROPS is required to provide report back about the Retirement scheme activities. This implies that this type of investment is not confidential.

The IHT or Inheritance Tax is one of the prime features of both the types of scheme. However, QROPS investment schemes are regulated by strict rules. QNUPS is different from QROPS as there is no reporting system like QROPS, the criteria are pretty simple and it allows the investors to spend the funds in the residential properties but as long as they don’t drag their own home into the policy scheme. Opting for this type of investment is really lucrative for those living in UK as they are keen to purchase properties in spite of recession.

In addition they also get the IHT benefit which makes them all the more attracted towards this scheme of investment. It also includes classes of exciting assets and permits wine and antiques, but it is mostly avoided by mainstream providers and they do not adopt these assets. So, we can see that all QROPS are QNUPS but it is not the other way round. If you want to gather further information about this investment scheme then you can always seek the assistance of an investment advisor who is experienced with this type of investment scheme and can guide you to select the right scheme, which can benefit you in the future. 

We all know that both QROPS and QNUPS are related to pension and pension related facilities for people who opt to settle abroad and also in UK. But, let us find the difference between the two.

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