New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
#16
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
It is the kind of thing that will seriously make me think of leaving NZ if they hit us with a bill for what was apparently a tax free vehicle
#17
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
#18
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Quote: Bev - "Does the transitional period apply to us then, even though this 4 year thing wasn't around when we first arrived?
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.
Last edited by BEVS; Jul 29th 2012 at 11:34 pm. Reason: Quote didn't work
#19
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Genesis:
If you were a transitional resident WHEN you transferred your UK Pension to a NZ QROPS then you are in the clear, these proposals do not apply = NO TAX !! This is clearly written in the proposals on page 2.
Transitional Resident is 4 years from when you arrived in NZ.
The proposed tax is not an increase on the value in your NZ QROPS (hmmm, your provider doesn't know what they are doing do they?)
If you were a transitional resident WHEN you transferred your UK Pension to a NZ QROPS then you are in the clear, these proposals do not apply = NO TAX !! This is clearly written in the proposals on page 2.
Transitional Resident is 4 years from when you arrived in NZ.
The proposed tax is not an increase on the value in your NZ QROPS (hmmm, your provider doesn't know what they are doing do they?)
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.
#20
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
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 .
#21
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
Quote BEV "Can you link to where NZ IRD seem to suggest the above please? If that's still possible."
Last edited by BEVS; Jul 30th 2012 at 12:09 am.
#22
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
Thank you for this thread.
All migrants should be reading and commenting on this. It's just so important.
#23
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
#24
BE Enthusiast
Joined: Jan 2012
Location: St Albans, Christchurch
Posts: 586
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
Cheers,
Mark.
#25
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
Cheers,
Mark.
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.
#26
Account Closed
Joined: Mar 2008
Posts: 0
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
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.
#27
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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 ......
#28
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
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.
#29
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
#30
Re: New Tax on non-NZ personal & occupation pension plans to hit migrants old and new
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.
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.
What did they say about the fool and his money? Hmmm.