BEVS

So.

How many of you out there have declared your UK pension plans on an NZ tax return?

Are you aware of the need to do this?

Genesis

Like many I had no idea that a little frozen plod pension was an FIF. A foreign investment fund. Fund is the word that stumped me. It was not a fund in my eyes and was no accruing any annual measurable growth and was not being paid into. I have found out from my pension provider that my main frozen police pension had no system to evaluate its annual growth..only ever a projected amount or the actual amount upon sale/retirement.

I have since completed an IR 478 self declaration form saying that I had these pensions and was unaware that they had to be declared yada yada yada. The latter apparently will help towards damage control for falling foul of the NZ tax system..apparently.

I am so angry that we could be looking at a 100k tax bill if there is a 30% taxation for example on the lump sums we bought over...HOW UNFAIR WILL THAT BE!!!!!!!!!!!!!?????? Especially when I was sold its tax free status.

Right now I hate every inch of NZ and the usless powers to be within. Where were they all when $5 billion went west? Doing sod all. But give them any easy way to sting immigrants and they are ever so resourceful eh?? Right now I wish I had never left Northants, or plod!!!!!

BEVS

We arrived 2004.
4 year transitional period bring it to 2008
However, we finally transferred the UK pension plans 2010. A 2 year gap.

This means we will be hit by the new proposals

hazeandsteve

So how am i affected.
I have a small index linked military pension still tied up in UK.
Can't touch it til I retire as far as I know.
Only worth about 100 pounds a month last I knew.

BEVS

When did you arrive ?
Yes. It will be affected.
It is still investment income so far as I currently understand it.

BlackCrossInResidence

I think if the value of the pension pot is $50,000 or below you'll be exempt.

hazeandsteve

Arrived 2007.
Is it viewed as income even though it isn't touched yet?
Definitely less than 50k.
Cheers for the answers so far.

BEVS

I'm not sure that is correct. If the fund is below $50K then all that means is that FIF rules don't apply. General tax rules apply. A return should still be made.

The money is still invested somewhere, doing something. That makes any growth , income from investment which should be declared.

Expat Kiwi

It seems grossly unfair that you should lose so much of the money you've worked hard to accumulate and set aside for the future security of yourself and your family. It's even more unfair when you consider that someone who hasn't had the financial prudence to provide for their retirement is entitled to a generous handout from the NZ government. Something has gone badly wrong somewhere and I urge you to protest in the most strongest possible way to your elected member.

It set me thinking if a similar taxation clawback existed over here. Since some people on this board may be looking at Australia at some time in the future I thought I'd do a bit of research. As far as I can see a similar set up doesn't exist here - yet - but that doesn't mean that things won't change in the future.

http://www.ato.gov.au/businesses/con...tent/64494.htm

BEVS

Ah ! I've found where you are coming from.

Bo-Jangles

I had understood this to be correct, although I wonder what exchange rate they will use to determine this? Last time I looked at a statement mine was about GBP 20k so could be within the range occasionally.

Ex Aucklander

This is a tax on Individuals not on Business as per the link you posted

This is the relevant situation (so yes they would be liable to Income Tax on it.
http://www.ato.gov.au/content/00313898.htm

yjx1nt7

Hi
I have an NHS pension whish is frozen in the UK .. Yes its over $100 ,,I also have not declared it (not aware I should of done ) I ve been here since 2010What does that mean for me??

Genesis

Apparently I am told that the amount does not matter..it is all taxable. Lots of experts seem to have lots of ideas. Suffice to say if you have any kind of pension anywhere in the world and you are a tax resident here unless you are in a certain time frame of 1/4/11 it is going to cost you somewhere along the line if this proposal goes through unless of course you have escaped by dint of when you got here. Pretty random eh???? A VERY fair taxation.

Also did you know that if your money arrived AFTER 1/4/11 you CANNOT avail yourself to the 15% amnesty if it arrived before. For us that means our projected tax bill is around $34,000 rather that $17,000. How unfair is that? Because of a date line. We started the transfer procedure back in 2010 but that is irrelvant.

yjx1nt7

Yet another reason to leave,,,,,,,,