Glossary · UK
What is QNUPS (Qualifying Non-UK Pension Scheme)?
An offshore pension arrangement that can sit outside a UK estate for Inheritance Tax purposes, used mainly by wealthy individuals with international connections or non-UK domicile.
Full Definition
A Qualifying Non-UK Pension Scheme (QNUPS) is an overseas pension arrangement that meets HMRC conditions set out in 2010 legislation, allowing assets held within it to potentially fall outside the member's estate for UK Inheritance Tax purposes, in a similar way to how most UK registered pensions already sit outside the estate. Unlike a QROPS (Qualifying Recognised Overseas Pension Scheme, used to transfer existing UK pension rights abroad), a QNUPS does not need to be built from a UK pension transfer and is not subject to the UK's registered pension scheme contribution limits such as the Annual Allowance, though it also does not attract UK tax relief on contributions in the way a UK registered pension does. QNUPS are a niche planning tool used mainly by high-net-worth individuals with international connections, non-UK domicile, or significant assets they wish to hold outside the UK IHT net, and anti-avoidance rules mean HMRC can challenge arrangements that appear designed purely to shelter assets from Inheritance Tax without a genuine retirement-planning purpose.