The legislation drafters forgot to fully explain inheritance tax (IHT) exemptions for some overseas pension schemes.
The intention was to exempt a pension fund from IHT on the the death of the pension member if no lump sum or other payment was drawn down from the pension fund (Section 151 IHT Act 1984).
Unfortunately Wholesale Jerseys , the law did not exactly say this in clear and unambiguous language for QROPS pensions (qualifying recognised overseas pension schemes).
HM Revenue and Customs confirmed this was an error and legislation was updated in the Finance Act 2008 , followed by the The Inheritance Tax (Qualifying Non-UK Pension Schemes) Regulations 2010.
These rules explained exactly which pensions are exempt from IHT – and introduced QNUPS (qualifying non-UK pension schemes).
QNUPS is the catch-all term for any overseas pension scheme exempt from IHT under the 2010 regulations.
The key point is the truism all QROPS are QNUPS but not all QNUPS are QROPS, as other overseas pension schemes can meet the definition as well.
Because QNUPS are not QROPS Cheap Soccer Jerseys China , they do not have to meet QROPS standards, so they may be based in countries that do not have double taxation or tax information exchange treaties with the UK.
Because QNUPS are not registered pension schemes like QROPS, different rules may apply to the investments held within the fund and the terms relating to lump sum drawdowns and benefit payments.
As QNUPS are not a specific product Cheap Soccer Jerseys , no rules say the fund must do this or that… the terms are specific to each provider and sometimes to individuals.
Residence and domicile are crucial issues for QNUPS and Qrops
IHT follows domicile, so if you are a UK domiciled individual regardless