France continues to attract retirees from around the world with its exceptional quality of life, rich culture, and world-class healthcare. Whether you’ve settled in Provence, the Dordogne, or the French Riviera, enjoying your retirement here is about more than beautiful surroundings — it’s about ensuring that your wealth is protected, your income is sustainable, and your legacy is secure.
One of the most effective ways to achieve this is through a QNUPS (Qualifying Non-UK Pension Scheme) — a flexible, internationally recognised pension structure that offers tax efficiency, investment freedom, and estate-planning advantages.
If you are a UK national or former UK resident living in France, a QNUPS could be a key part of securing your prosperous and tax-efficient retirement.
What Is a QNUPS?
A QNUPS (Qualifying Non-UK Pension Scheme) is an overseas pension recognised by HMRC. Introduced in 2010, it was designed to provide individuals who have already left the UK, or who are no longer contributing to UK pensions, with a compliant way to continue saving for retirement — while also helping to protect assets from UK Inheritance Tax (IHT).
Unlike a QROPS (Qualifying Recognised Overseas Pension Scheme), which is specifically used to transfer UK pension funds abroad, a QNUPS can be funded from other assets such as cash, property, or investments. This makes it a powerful tool for wealth accumulation and succession planning — especially for expatriates with significant assets in multiple jurisdictions.
Key Benefits of a QNUPS for Expats in France
For British and other international retirees living in France, a QNUPS offers a range of advantages that go beyond simple retirement savings.
1️⃣ Potential Inheritance Tax Protection
One of the most significant benefits of a QNUPS is its potential exemption from UK Inheritance Tax (IHT).
Because a QNUPS is classed as a pension — not a trust — it generally sits outside the contributor’s estate, meaning it’s not usually subject to IHT on death. For UK-domiciled individuals with family or assets still in Britain, this can help protect a significant portion of wealth for future generations.
2️⃣ Tax-Efficient Growth
Investments held within a QNUPS can grow free of UK capital gains and income tax, allowing your retirement capital to compound over time.
While withdrawals are typically taxable in your country of residence (such as France), effective tax planning and the use of Double Taxation Treaties between the UK and France can help minimise the total tax paid.
3️⃣ Flexible Investment Options
A QNUPS allows you to hold a wide range of investments — including equities, bonds, funds, property, and alternative assets — giving you control and flexibility over how your wealth is managed.
This flexibility makes QNUPS particularly attractive to retirees who prefer an actively managed, diversified investment strategy aligned to their personal goals and risk tolerance.
4️⃣ No Lifetime Allowance Restrictions
In contrast to UK pensions, QNUPS do not fall under the UK’s Lifetime Allowance (LTA) rules, meaning you can contribute larger sums without incurring tax penalties.
This is especially beneficial for high-net-worth individuals who have reached their pension contribution limits in the UK but wish to continue growing their retirement savings in a compliant and efficient way.
5️⃣ Long-Term Income and Estate Planning Flexibility
A QNUPS can provide retirement income for life, with flexible drawdown options to suit your needs. It can also continue to support your beneficiaries after your death, without triggering the punitive tax charges that sometimes apply to traditional UK pension transfers.
QNUPS vs QROPS: What’s the Difference?
While both QNUPS and QROPS are overseas pension schemes recognised by HMRC, their purposes differ:
| Feature | QNUPS | QROPS |
|---|---|---|
| Purpose | To build or supplement retirement savings using non-pension assets | To transfer existing UK pension funds abroad |
| Contributions | Can be funded from savings, property, or investments | Funded by transferring UK pension pots |
| IHT Benefits | Generally exempt from UK Inheritance Tax | May also offer protection, depending on structure |
| Lifetime Allowance | No limit | Subject to rules at time of transfer |
| Ideal for | Individuals with excess wealth seeking tax-efficient estate planning | Those wishing to move UK pensions abroad |
For many expatriates in France — particularly retirees with diversified assets — a QNUPS can complement or enhance existing pension arrangements, offering both protection and flexibility.
Why Professional Advice Matters
While a QNUPS can be a highly effective retirement and estate-planning solution, it must be structured correctly to ensure compliance and maximise benefits. The rules surrounding tax residency, domicile, and succession law — particularly under French inheritance rules and the UK–France Double Taxation Treaty — can be complex.
At Blacktower Financial Management, our advisers specialise in helping expatriates across Europe make the most of their pensions and wealth through cross-border financial planning. We provide expert advice on:
- Setting up QNUPS and QROPS solutions tailored to your circumstances.
- Ensuring compliance with both UK and French tax regulations.
- Managing your investments for sustainable, long-term growth.
- Coordinating your estate and inheritance planning.
Secure Your Prosperous Retirement in France
Your retirement should be a time of comfort, confidence, and financial freedom. A well-structured QNUPS can help you protect your legacy, reduce tax exposure, and build sustainable wealth for the years ahead.
📞 Book your complimentary consultation today
Speak with one of Blacktower’s international financial advisers to explore how a QNUPS could help you secure your prosperous retirement in France — with peace of mind and long-term financial security.