UK Pension Transfer to NZ Service

Taxation Issues
UK NZ Pension Transfers

Under current tax legislation in New Zealand (NZ) all earnings from Superannuation funds are taxed at 33%.  All benefits/withdrawals are tax free.

Generally there is no tax payable when a UK pension fund is transferred into a New Zealand (NZ) approved superannuation fund - refer to FIF exemptions below.

If your UK pension fund is employment or self employment related and you only made contributions to it before you became a resident of New Zealand, then you will be exempt from Foreign Investment Fund (FIF) Regulations.

If you acquired an interest in a UK pension fund which was NOT employment or self employment related before you become a resident in New Zealand you will be exempt from the FIF regime for the rest of the income year in which you first become resident, and for the next three income years provided you became resident after 1st April 2006.

After this exemption period has expired, you are then required to declare your interest in your UK pension fund to the New Zealand Inland Revenue.  Income tax will then be levied on any gains the fund makes each year.

There is a possibility that should you leave your pension fund in the UK and at retirement take the Tax Free Cash sum, this may be subject to tax in NZ, even though you have left your funds in the UK.  New Zealander's are taxed on their world-wide income.

So the tax advantages to transfer are:

• You simplify your tax calculations
• You remove the tax and exchange rate uncertainties
• You pay no tax on the proceeds from the New Zealand superannuation plan.
  
  
  Phone:        0064 4 471 0662     Alison Renfrew            
  Fax:            0064 4 471 0615
  e-mail:       Please complete the fact finder form or email ukpensions@LYFORDS.co.nz

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