Pictured: Angela South 

Investors looking for a safe home for their surplus funds should take a long hard look at QNUPS, according to Angela South, managing director of Magna Wealth Management and one of the pioneers of Qualifying Non-UK Pension Schemes.

"The Inheritance Tax (Qualifying Non-UK Pension Schemes) Regulations 2010 came into force on February 2010 and introduced QNUPS," she said.

"The financial services market has been slow to pick up on the advantages that QNUPS offer, in many cases because the benefits seemed too good to be true, but experts in the pensions market were quick to see the enormous potential they held."

Magna Wealth Management began considering QNUPS as an extremely useful tool to offer alongside the QROPS (Qualfying Recognised Overseas Pension Schemes) that parent company Expat Pension Providers Ltd has been successfully using for clients living abroad.

"It became clear in certain cases that clients could not yet take advantage of QROPS, either because they had not lived abroad for five full tax years, or because of their age," she said.

"For those who own substantial assets and want these assets to grow in a tax-efficient pension and most importantly want to protect their assets against UK Inheritance Tax, then QNUPS is definitely something they should be considering."

QNUPS provides tax efficient pension planning for wealthy UK residents as they generally grow free of Capital Gains Tax and other taxes and they protect the individual and heirs from Inheritance Tax (IHT).

There is no Lifetime Gift Charge, QNUPS are not subject to UK Pension Sharing Orders on divorce and are generally more tax efficient than owning assets personally.

Mrs South said: "You can transfer cash, assets or family wealth into a QNUPS and there is no absolute limit on contributions into a QNUPS.

"Very substantial contributions are generally allowable, subject to your status, but you should personally retain enough assets to live on prior to retirement."

Contributions have to be made by individuals and not from their employers.

Accessing the pension is relatively hassle free as well, providing you stick by the rules, said Mrs South.

"From age 55 you can take up to 30 per cent as a lump sum paid without deduction of any tax. If you need cash before age 55 you can take out cash, generally tax-free, as a loan.

"On death the funds go to your heirs/beneficiaries totally free of IHT. The assets are IHT free immediately and there is no seven year qualification period."

Magna Wealth Management is offering a free initial consultation to those who have significant cash and assets they wish to protect via angela@magnawm.com or on 01789 490920.