UK Pension Transfers

Advantages - what you will gain by transferring your UK Pension to New Zealand:

Control over your money. You get to decide how your funds are invested and whether you wish to continue adding savings to it or not.
Consolidate your retirement savings in New Zealand.
You may be able to access more than 25% as a cash lump sum when you reach minimum UK retirement age, currently age 55, once you are outside the QROPS reporting period.
No requirement to purchase an annuity at retirement age.
No need to worry about your UK Pension provider - who is it with, is it safe, funded adequately, investing your funds wisely, or merging with another provider.
No need to worry about the exchange rate risk and fees involved in bringing the pension funds over to New Zealand after retirement when the pension comes into payment.
No need to worry about tax issues that would occur if your pensions come into payment in the UK.
In the event of your death your NZ Superannuation plan will go to your estate.

New rules will apply to transfers to QROPS where the transfer is made on or after 6 April 2017

All UK Pension Transfer funds must be deposited in a Qualifying Recognised Overseas Pension Scheme (QROPS). All the schemes we recommend have confirmation that they have been accepted as a QROPS. In summary:

Clients under age 55

100% of the transferred funds must be locked in until age 55.

Clients age 55 and over UK Tax Rules

25% of the funds be available to withdraw immediately The remaining 75% of the funds are available for withdrawal. However, if you access more than 25% of the funds, then any amount in excess of 25% will be subject to UK tax if you return to the UK within 10 years of leaving the UK.

Overseas Transfer Charge

If you leave New Zealand to live in another country (e.g. Australia) within 5 full consecutive tax years from the date of the transfer, an Overseas Transfer Charge of 25% of the original amount transferred is payable.

In Summary

If you remain in New Zealand, you may access all the funds. If you return to the UK within 10 years from when you left the UK, then you will have to pay UK tax on any amount taken above 25%. If you move to another country within 5 years from the date of the transfer, an Overseas Transfer Charge of 25% will apply.

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The April 2015 Pensions Regulator Rule Changes for Defined Benefit schemes with a Transfer Value of more than £30,000

Regulated financial advice from a UK Adviser

Due to the recent April 2015 Pensions Regulator rule changes, any individual looking to transfer from a defined benefit (DB) to a defined contribution (DC) scheme must by law receive regulated financial advice from a UK Adviser authorised by the Financial Conduct Authority (FCA) before going ahead if the transfer value is more than £30,000.
If your UK pension is a Defined Benefit scheme with a Transfer Value of more than £30,000, this will apply to you
Many UK Adviser firms authorised by the FCA who are willing to provide this service to overseas clients charge thousands of pounds to provide the necessary report.

The good news:

We have carefully researched the UK Advisers authorised by the Financial Conduct Authority (FCA)
We have an agreement in place with a UK Adviser firm to provide IFA advice to clients who wish to transfer their over £30,000 defined benefit pensions to New Zealand.
We have found an affordable TVAS (transfer value analysis) report.

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Contact us to find out more

Top 10 facts on international tax

New Zealand residents are taxed on their "worldwide income", that is income from New Zealand as well as from other countries. A New Zealand resident individual that receives interest income from the United Kingdom will be taxed on that income in New Zealand as well as the United Kingdom. Your worldwide income includes any income that you derive in a foreign country even if you do not bring the money into New Zealand.

Please Refer to Note 1: New Zealand residents are generally taxed on their worldwide income

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A Disclosure Statement is available on request and free of charge.

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