Isle of Man QNUPS

A QNUPS offers an alternative means of funding for retirement for those who are close to exceeding the allowances for tax-relieved savings. A QNUPS falls outside of scope for UK Inheritance Tax (IHT), enabling members to pass on any residual funds to beneficiaries in a tax-efficient manner.

Although QNUPS do not qualify for UK tax relief, they are not subject to any cap on contributions. In addition, investments in a QNUPS can grow free of tax. Under Isle of Man legislation, income is paid gross, without the Isle of Man tax deduction.

Benefits can be taken at age 55 and include a tax-free pension commencement lump sum and flexible income options.

Isle of Man QNUPS – Key Information

Isle of Man QNUPS – Key Information

Investment Options Open architecture
ContributionsNo limits on fund size or contributions.
Benefit commencement55 to 75 years of age
Maximum Lump Sum 30%
IOM tax rate applicable to pension*

20% withholding tax on income withdrawal for most non-residents (0% where a DTA applies).

Death BenefitsLump sum or survivor’s pension
Low 7.5% tax on fund after deathIf a member has commenced income drawdown prior to death, most of the fund can be passed on to the beneficiaries.
IHTOutside UK IHT for non-UK residents.

If a member has commenced income drawdown prior to death, this will result in a 7.5% death tax charge being applied prior to any benefits being paid out to dependents.

* Isle of Man tax will not apply where the pension taxing rights are granted to the member’s country of residence under the terms of a double taxation agreement.

IoM QNUPS – The Pacifica Personal Pension Plan

Sovereign has developed the Pacifica Personal Pension Plan, a multi-member QNUPS that is authorised in the Isle of Man and satisfies the necessary conditions to be regarded as a Qualifying Non-UK Pension Scheme for UK purposes.

The Isle of Man specialises in all aspects of international pension planning. All pension funds on the Isle of Man grow free of any Isle of Man tax. The Island also has a growing network of double tax agreements that can enable scheme members to take pension benefits from an Isle of Man QNUPS in a tax efficient manner.

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