British retirement pension
#1
British retirement pension
Help please, my parents are seriously contemplating emigrating to New Zealand. We have been here three years and their chance of gaining residency is not an issue. However they are rightly concerned about whether their pension will be taxed. I have searched the threads here and some say they wont get taxed and some dont say anything. The IRD website has stated they will be taxed at a rate of 19.5%. This seems very unfair when they dont get taxed in the UK. After all dad worked very hard and paid tax all his life. Can someone please tell me how they stand?
#2
Re: British retirement pension
. I have searched the threads here and some say they wont get taxed and some dont say anything. The IRD website has stated they will be taxed at a rate of 19.5%. This seems very unfair when they dont get taxed in the UK. After all dad worked very hard and paid tax all his life.
#3
Re: British retirement pension
No the pension from the government is not taxed, he does have a very small private pension which is taxed but the state benefit pension is not taxed at all.
#4
BE Forum Addict
Joined: Feb 2005
Location: Back in NZ & loving it - living in Orewa
Posts: 1,183
Re: British retirement pension
The difference is, there's a personal tax-free allowance in UK but not in NZ, so when you're a NZ taxpayer, you pay tax on all income. One of the factors to consider when considering a move, and a reason to vote for a lower tax government once you're a citizen.
#6
Re: British retirement pension
True, he hasnt done a days work here or he would be paying with even more taxes like i do now. However it obviously impacts on their decision to come over when he will lose a lot of his pension to the tax man.
#7
BE Enthusiast
Joined: Nov 2004
Posts: 311
Re: British retirement pension
My grandfather had his old age pension and forces pension wired to NZ - not sure if it was taxed or not. I'd ask him but he died 6 months ago.
#8
Re: British retirement pension
Help please, my parents are seriously contemplating emigrating to New Zealand. We have been here three years and their chance of gaining residency is not an issue. However they are rightly concerned about whether their pension will be taxed. I have searched the threads here and some say they wont get taxed and some dont say anything. The IRD website has stated they will be taxed at a rate of 19.5%. This seems very unfair when they dont get taxed in the UK. After all dad worked very hard and paid tax all his life. Can someone please tell me how they stand?
If its not - it should not be attracting enough tax to be worried about.
#9
Just Joined
Joined: Jun 2006
Posts: 20
Re: British retirement pension
Help please, my parents are seriously contemplating emigrating to New Zealand. We have been here three years and their chance of gaining residency is not an issue. However they are rightly concerned about whether their pension will be taxed. I have searched the threads here and some say they wont get taxed and some dont say anything. The IRD website has stated they will be taxed at a rate of 19.5%. This seems very unfair when they dont get taxed in the UK. After all dad worked very hard and paid tax all his life. Can someone please tell me how they stand?
#10
Re: British retirement pension
Is there any way you can keep the pension in a uk or off shore account and use a UK credit card in NZ- to avoid NZ tax on pension?
#11
Re: British retirement pension
We did think about this but wonder about the consequences. Has anyone else tried it and either got away with it or didn't
#14
Re: British retirement pension
However, income tax obligations must be complied with regardless.
#15
Just Joined
Joined: Jun 2006
Posts: 20
Re: British retirement pension
Tried all that and got absolutely nowhere!! The answer is to either not declare and run the risk of the NZ and UK tax departments talking to each other (which they are quite entitled to do under the double taxation agreement) so as not to pay tax in NZ or, front up with the truth and pay the tax. I know I didn't want to get stung with a huge tax bill and a fine for tax evasion so did the latter!