BEVS

Yes.

I said the exact same thing to Mr BEVS last evening. It may well be the straw that broke the camels back.

Genesis

I will cut off my nose to spite my face (if Kate agrees!!), we can find somewhere else to live eh? I have done my submission and have asked Kate to do one and have asked her to send the email to another 'QROPs victim' at her work. I have also been onto the Dom Post as I have spoken to a reporter about his a while back. Can I suggest the more of us that call the Dom Post the better then he might see the public interest in it. Better not give any names (as I don't have his permission) just ask for the chap who deals with matters fiscal/IRD that type of thing. It is all about getting a ground swell of opostion against this really unfair retro-taxation.

In my submission I have suggested they will alienate many people and that the taxation should be one that is invoked at a future date rather than retro taxing us which is incredibly unfair. I would not have touched this QROPs thing with a barge pole had I thought/known there was ANY tax liability.

chc4me

"

The Transitional Period is important for the fact that IF you transferred your pension DURING the first 4 years, then these new proposals do not apply. The document does confirm that the 4 years applies to all migrants (see page 6, point 2.18 of the document at previously provided link).

If you transferred your pension AFTER the 4 year period, then the proposals are to tax some or all of the transferred value.

I fully agree that the proposals are unfair. There was advisory information from the IRD at the time to suggest that foriegn superannuation schemes were exempt from tax. Now the IRD are saying the opposite.

Genesis

Alas I think we are liable if they pass it as we did not go down the QROPs route until some time after April 2010. Are they right about the 4 year transitional period starting form the 1st FULL year or does it start the moment you arrive in NZ?

AND yes you are right these bloody QROPs people who charged me a small fortune and do not appear to know their full facts.

So, thus far........ I am going to be shafted by the IRD so it seems, bloody Hanover Finance and the QROPs people. NZ is a BLOODY JOKE! Want to lose ALL your money?? The shores of NZ has any number of friendly money grabbing so and sos who will take it most of it for you.

BEVS

Right. BUT the transfer value is not reflective of unearned income is it. The total sum of that money isn't all windfall & positive investment It is reflective of the money I put into the UK pension plan plus any increase or loss that money did or did not earn in the managed funds. In fact, the UK pension was managed.

Can you link to where NZ IRD seem to suggest the above please? If that's still possible.

Does NZ IRD actually know how UK private and occupational pension funds work?
I'd be interested to know what they deem fair to tax on a final salary scheme.

I agree with Genesis on this. We are going to be swindled. There is no way I would have moved those funds under these circumstances. They would have sat there until our pensionable ages came and then we would have made further decisions.
Mr BEVS would certainly have left his NHS one and drawn when the time came.


I am so very angry .

chc4me

The document is called "Qualifying Foreign Private Annuities" and number IR257. The document, appears to have been removed with the IRD website, saying it is current under review. But I found one here and saved a copy for future reference.

BEVS

Not sure I thanked you for this ChCh4me.

Thank you for this thread.

All migrants should be reading and commenting on this. It's just so important.

chc4me

Thanks Bev, but it's never nice to be the bearer of such news. Thought it was important to bring to everyones attention as it is vitally important to understand such issues. Will keep everyone posted as new info comes to light.

Mark Smith

Please excuse my ignorance, as a newly arrived immigrant I receive a monthly British Army pension (disablement) and a War pension. This was tax free in the UK and the relevant agencies (SPVA Veterans agency) have assured me that it is in NZ - Do I need to start worrying?
Cheers,
Mark.

Genesis

My mate has a regular pension from the UK army, he had no idea it was taxable here in NZ..it was. I do not know if yours is the same as it appears to be a disablement one which I assume is different from a 'normal' one.

Best you call the IRD NZ AND take advice from a tax expert regarding your NZ tax liability re this pension. I had no idea for the 1st 3 years that I had to declare all money I made in the uk....not much mind you, just a few small dividends and a bit of UK interest..it was/is all taxable.

I had to go to the tax man and pay back tax etc. Alas ignorance is not innocence. Many people like me did/do not know that any UK income has to be declared to the NZ tax man. For instance if you get rental from your UK home you must declare it. Of course there is the 4 year exemption for all new arrivals after some time in 2006 that will see you quids in re this matter.

On another matter an example of how things can change re tax liability is any income over $500 from your kids is now seen as 'income' for the purposes of claiming Working for Family Tax credits..we all need to be vigilant re tax issues.

scrubbedexpat094

Many thanks from me too chc4me. I've just printed everything off & will give it to the other half to peruse .

Good to see you back Genesis . We didn't know about declaring stuff either, only found out this year & we haven't done anything about it yet .

I was just starting to feel that we may get on top of things financially in the next couple of years but looks like we could be screwed again. Trying to stay calm at this point.

alanmacc

Right now I am fully confused and possibly really peeved.

I have been here 5 years this year and transferred my UK pension into a QROPS scheme with 40% in an unlocked account which was able to be withdrawn after 5 full tax years and the remaining 60% in a locked scheme, which I am unable to touch until retirement age.

So does this mean I am being penalized and taxed on this money already in an NZ investment fund?

Im confused as hell now ......

chc4me

Alanmac,
You've been here 5 years, but when did you transfer your pension? Was it within the first 4 years? If so, you are in the clear, if not, you could be caught in the new proposals.

alanmacc

Phew ...... yup brought it over in the first couple of years ......., cheers Chc4me

Genesis

Talking of screwed I have never parted with so much cash in my life since coming to NZ. What with all the Finance house crap and now a potentially huge tax bill in the wings!! Factor in a $70k plus bill for a new roof (if I want to ensure the viability of my home for the next 20 years) NZ has been a VERY VERY big money pit for us!!!!!!!!

What did they say about the fool and his money? Hmmm.