The company said that in order to provide the enhanced tax protection, the QNUPS was designed to incorporate an international insurance bond within its structure which, according to marketing director Keith Boniface, gives “greater certainty” to the income and capital gains mitigation provided by the product.
“The IHT benefits of QNUPS are clear – any assets placed in one are immediately free of inheritance tax, without any waiting period or qualifications as long as it is not deemed as general anti avoidance (e.g. death bed planning),” he said. “However, the capital gains and income tax aspect have until now been less certain.
“Some advisers have had concerns HMRC might at some point attempt to tax the income in a QNUPS – although it has not done so to date. We have addressed this uncertainty by using an international insurance bond.
“The income and capital gains tax benefits of international bonds are well-established so advisers and their clients have peace of mind that their assets are securely protected.”
In addition to the tax mitigation, Brooklands said the QNUPS also allows loans which are usually tax-free.
Facts about the product:
• Minimum investment: £500,000.
• No exit charges.
• Option available for third-party to take on compliance and professional indemnity insurance liability in exchange for advisers splitting fees and commissions.
• No cap on contributions levels.
• No restrictions on investible assets, subject to Trustee approval
• The Brooklands Pensions QNUPS is suitable for UK-residents and UK expatriates who retain assets in the UK. It may also be used to avoid non-UK inheritance or estate duties.
• Benefits may be taken from age 55 or prior to 55 as a loan paid gross
• IHT exempt.
