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New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Old Aug 1st 2012, 12:40 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by BEVS
If the funds remain in the UK then those migrants are not affected by these new proposals whilst funds remain overseas?

However, they should still be making tax returns .
They are affected in terms of any lump sums withdrawn at retirement will be taxed based on how long they have lived in NZ.
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Old Aug 1st 2012, 12:49 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by chc4me
They are affected in terms of any lump sums withdrawn at retirement will be taxed based on how long they have lived in NZ.
So if we went to live in Australia for a few years before retirement would that help?

As I haven't worked in NZ since the end of March '09 & therefore I haven't paid any tax, do I still need to fill in a tax return for my NHS pension.

Not to do with pensions but do the same rules apply to bringing lump sums of cash over. We have two endowments, one of which matured in May, the other is due to mature in Sept, if we bring those over do we have to pay tax on them too? I was hoping to be able to pay off a chunk of our mortgage.

Last edited by scrubbedexpat094; Aug 1st 2012 at 12:50 am. Reason: spelling
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Old Aug 1st 2012, 12:51 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by chc4me
They are affected in terms of any lump sums withdrawn at retirement will be taxed based on how long they have lived in NZ.
At least 'they' get to choose if they want to do this and can take into consideration the NZ tax impact. Not everyone takes a lump sum. Many prefer to keep the fund intact to facilitate the best pension income possible.

Seems to me that NZ IRD are viewing all my wee UK personal pension fund as a 'lump sum'.

Am still doing my best to understand it all . You are a wee for putting up with us about this.
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Old Aug 1st 2012, 12:56 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by Vitalstatistix
As I haven't worked in NZ since the end of March '09 & therefore I haven't paid any tax, do I still need to fill in a tax return for my NHS pension.

We have two endowments, one of which matured in May, the other is due to mature in Sept, if we bring those over do we have to pay tax on them too?
Get yourself to an accountant immediately! The endowments that you mention are Foreign Investments and you should be declaring those for tax regardless of what you do with the money. Just because you don't work does not mean no liability.
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Old Aug 1st 2012, 1:21 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by chc4me
Get yourself to an accountant immediately! The endowments that you mention are Foreign Investments and you should be declaring those for tax regardless of what you do with the money. Just because you don't work does not mean no liability.
Bugger, I thought you might say that!
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Old Aug 1st 2012, 2:15 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

chc4me, you are a wealth of info. Thanks so much for taking the time to answer peeps questions.

You rock!!
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Old Aug 1st 2012, 3:56 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

This may be helpful

IRD leaflet

Page 6 has a question and answer section.
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Old Aug 1st 2012, 4:07 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Does all this affect pension pots below $50,000 . I'm muddled over that one now.

With the existing rules should these have been declared on a tax return or not . Or is only if you are over $50,000 that you had to declare & complete a tax return?

Is it the collective pension pots ? Husband had 3 UK pots dotted about.
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Old Aug 1st 2012, 4:50 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by chc4me
They are affected in terms of any lump sums withdrawn at retirement will be taxed based on how long they have lived in NZ.
Thank you again for all your hard work. Can I just confirm that any pension witha transfer value UNDER $50k is void of any tax 100%?

I ask as we had our 2 larger ones and some much, much smaller ones way well under $50k. Thanks in advance.

OR as some one else has asked........do they tot up your total pot of both large and small ones and then use the total amount as your liability?

Last edited by Genesis; Aug 1st 2012 at 4:58 am.
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Old Aug 1st 2012, 4:52 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by chc4me
Get yourself to an accountant immediately! The endowments that you mention are Foreign Investments and you should be declaring those for tax regardless of what you do with the money. Just because you don't work does not mean no liability.
BLOODY HELL!! I rang the IRD about my 2 endowments and they told me that they do not have to be declared.
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Old Aug 1st 2012, 4:54 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by BEVS
This may be helpful

IRD leaflet

Page 6 has a question and answer section.
So does any one know what happens if we opt to pay the 15% before 1/4/2014 and this does not get passed in law...won't we have wasted our money??
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Old Aug 1st 2012, 6:08 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

I think I will be tempted not to bring it here!!!! I have a UK NHS final salary pension that I paid for 29 years. Decent lump sum and as I left a band 8 pretty good monthly... mmm me thinks I may need some advice
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Old Aug 1st 2012, 7:16 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by Genesis
BLOODY HELL!! I rang the IRD about my 2 endowments and they told me that they do not have to be declared.
Any one know what % they are taxing endowments on these days???

Looks like NZ is a real winner for those who planned and saved for their futures eh?

Last edited by Genesis; Aug 1st 2012 at 7:21 am.
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Old Aug 1st 2012, 7:21 am
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

Originally Posted by BEVS
Does all this affect pension pots below $50,000 . I'm muddled over that one now.

With the existing rules should these have been declared on a tax return or not . Or is only if you are over $50,000 that you had to declare & complete a tax return?

Is it the collective pension pots ? Husband had 3 UK pots dotted about.
Why see a specialist at all (being Devil's advocate) .... why not avail your self to the taxation liabilities and before 1/04/2014 simply go for the 15 % option at your tax rate? Would that be stupid as the proposal may not go through and we will all get away with it...... and those who have stumped up will have lost their wonga? Just how confusing is all of this? I guess that is why you need a specialist..but as I say they don't know what will be passed in law either!!!!
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Old Aug 1st 2012, 12:28 pm
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Default Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new

I realise that this won't be of any comfort to most of those posting on this thread but the scheme actually has advantages for new residents at the older end of the age spectrum who are able to get access to their pension as soon as they arrive.
Not only can they take 25% tax free (as in the UK) but for the next four years they won't be taxed on any annual drawdown or annuity (which they would be in the UK). They don't even have to bring the money over to NZ but can re-invest it outside NZ free of NZ tax for four years (and if they're cute enough pay no tax on the interest it earns).
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