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"Dangerous" offshore inheritance tax solution hits mainstream

Advisers are touting a new "quick fix" inheritance tax solution which takes advantage of an offshore pensions loophole, but is it too good to be true? Investors Chronicle investigates.
"Dangerous" offshore inheritance tax solution hits mainstream

Thousands of wealthy investors are being sold an unregulated 'loophole' inheritance tax solution that most wealth managers warn will put them at risk of huge financial losses, fines and prosecution.

A number of regulated financial advisers are, for the first time, encouraging people to take advantage of a glitch in the law, which allows them to instantly protect unlimited sums of money from inheritance tax (IHT) by funnelling it into pension schemes in Guernsey and Malta.

But these foreign pensions, known as qualifying non-UK pension schemes (QNUPS), were set up to give UK residents living abroad access to their retirement fund. Never were they intended to help people firmly settled in the country hide from inheritance tax.

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