NZ Tax Bill Introduced - UK Pensions
#61
Just Joined
Joined: Nov 2013
Posts: 2
Re: NZ Tax Bill Introduced - UK Pensions
chc4me I cannot thank you enough for your input on this tricky issue. I have tried to read several pages of the thread but have not (so-far) found a similar case to myself.
I moved to NZ from the UK in 2001 and became a citizen in 2006. I returned to the UK for family reasons in 2007. I had a few paid-up pension funds before moving to NZ and did not transfer them as I was unsure where I was going to retire. I still have those pension funds and in the UK have been contributing to a new currently small fund.
I hope to return to NZ within the next 2,3, or 4 years (I am currently 57 years old) to work a little before retirement and would like to transfer my pensions to NZ at that time. My aim would be to continue to keep the funds in a paid up state in authorised NZ fund(s) until I reached 65 or maybe even a little past that time. I may have been (or could be) out of NZ for 10 years before returning home (if that it relevant). I guess I'm hoping that after a period of time the 4-year grace period may start afresh after 10, 20, 100 years
What is my tax position (If you can tell from this brief description).
Best regards, JackJ
I moved to NZ from the UK in 2001 and became a citizen in 2006. I returned to the UK for family reasons in 2007. I had a few paid-up pension funds before moving to NZ and did not transfer them as I was unsure where I was going to retire. I still have those pension funds and in the UK have been contributing to a new currently small fund.
I hope to return to NZ within the next 2,3, or 4 years (I am currently 57 years old) to work a little before retirement and would like to transfer my pensions to NZ at that time. My aim would be to continue to keep the funds in a paid up state in authorised NZ fund(s) until I reached 65 or maybe even a little past that time. I may have been (or could be) out of NZ for 10 years before returning home (if that it relevant). I guess I'm hoping that after a period of time the 4-year grace period may start afresh after 10, 20, 100 years
What is my tax position (If you can tell from this brief description).
Best regards, JackJ
#62
Re: NZ Tax Bill Introduced - UK Pensions
Thanks Jack for your question. As usual, one question leads to another and what may appear straight forward can quickly become complex. You would need to consult a suitable accountant to confirm your tax status as there are many situations that can impact a persons tax position.
As a general answer to your question, the 4 year tax exemption, called "Transitional Resident", started on 1 April 2006 and is a one time only offer for new migrants. You may qualify for this as it does apply to returning residents if they have been away from NZ for 10 years, (with a few conditions) so you might be in luck. Here is a link for more information.
The new Tax Bill referred to in the heading of this thread does allow for a general 4 year grace period for those that do not qualify for Transitional Resident. Again this exemption is subject to conditions which you will be able to explore closer to the time of your return to NZ.
Great questions.
Thanks.
As a general answer to your question, the 4 year tax exemption, called "Transitional Resident", started on 1 April 2006 and is a one time only offer for new migrants. You may qualify for this as it does apply to returning residents if they have been away from NZ for 10 years, (with a few conditions) so you might be in luck. Here is a link for more information.
The new Tax Bill referred to in the heading of this thread does allow for a general 4 year grace period for those that do not qualify for Transitional Resident. Again this exemption is subject to conditions which you will be able to explore closer to the time of your return to NZ.
Great questions.
Thanks.
#63
Just Joined
Joined: Oct 2013
Location: Auckland
Posts: 14
Re: NZ Tax Bill Introduced - UK Pensions
Thanks Jack for your question. As usual, one question leads to another and what may appear straight forward can quickly become complex. You would need to consult a suitable accountant to confirm your tax status as there are many situations that can impact a persons tax position.
As a general answer to your question, the 4 year tax exemption, called "Transitional Resident", started on 1 April 2006 and is a one time only offer for new migrants. You may qualify for this as it does apply to returning residents if they have been away from NZ for 10 years, (with a few conditions) so you might be in luck. Here is a link for more information.
The new Tax Bill referred to in the heading of this thread does allow for a general 4 year grace period for those that do not qualify for Transitional Resident. Again this exemption is subject to conditions which you will be able to explore closer to the time of your return to NZ.
Great questions.
Thanks.
As a general answer to your question, the 4 year tax exemption, called "Transitional Resident", started on 1 April 2006 and is a one time only offer for new migrants. You may qualify for this as it does apply to returning residents if they have been away from NZ for 10 years, (with a few conditions) so you might be in luck. Here is a link for more information.
The new Tax Bill referred to in the heading of this thread does allow for a general 4 year grace period for those that do not qualify for Transitional Resident. Again this exemption is subject to conditions which you will be able to explore closer to the time of your return to NZ.
Great questions.
Thanks.
#64
Re: NZ Tax Bill Introduced - UK Pensions
ChCh4me is a UK pension transfer specialist. Perhaps hire him.
#65
Re: NZ Tax Bill Introduced - UK Pensions
Thanks Bev for the vote of confidence. For Plent2d, accountants in Auckland, no I don't have any specific person in mind but you might like to start with the main firms. I do encourage you to do your own research, interview at least 3 accountants and make sure the accountant knows about the new bill going through parliament as well as the current tax laws for UK pensions (finding that person is not as easy as it sounds!!). Most accountants offer the first hour free.
#66
Just Joined
Joined: Nov 2013
Posts: 2
Re: NZ Tax Bill Introduced - UK Pensions
Thanks Jack for your question. As usual, one question leads to another and what may appear straight forward can quickly become complex. You would need to consult a suitable accountant to confirm your tax status as there are many situations that can impact a persons tax position.
As a general answer to your question, the 4 year tax exemption, called "Transitional Resident", started on 1 April 2006 and is a one time only offer for new migrants. You may qualify for this as it does apply to returning residents if they have been away from NZ for 10 years, (with a few conditions) so you might be in luck. Here is a link for more information.
The new Tax Bill referred to in the heading of this thread does allow for a general 4 year grace period for those that do not qualify for Transitional Resident. Again this exemption is subject to conditions which you will be able to explore closer to the time of your return to NZ.
Great questions.
Thanks.
As a general answer to your question, the 4 year tax exemption, called "Transitional Resident", started on 1 April 2006 and is a one time only offer for new migrants. You may qualify for this as it does apply to returning residents if they have been away from NZ for 10 years, (with a few conditions) so you might be in luck. Here is a link for more information.
The new Tax Bill referred to in the heading of this thread does allow for a general 4 year grace period for those that do not qualify for Transitional Resident. Again this exemption is subject to conditions which you will be able to explore closer to the time of your return to NZ.
Great questions.
Thanks.
#67
Re: NZ Tax Bill Introduced - UK Pensions
Hi Chch4me.
Quick Q if I may
I arrived this year. I sought advice on my 17 year old teachers pension before I left.
I was advised to leave it in the UK, and wait to see if the Govt get their changes thru. If they don't my pension as a UK teacher has a lot of benefits.
Should I consider a transfer within the four years - would it still be worth my while?
Quick Q if I may
I arrived this year. I sought advice on my 17 year old teachers pension before I left.
I was advised to leave it in the UK, and wait to see if the Govt get their changes thru. If they don't my pension as a UK teacher has a lot of benefits.
Should I consider a transfer within the four years - would it still be worth my while?
#68
Re: NZ Tax Bill Introduced - UK Pensions
Hi Chch4me.
Quick Q if I may
I arrived this year. I sought advice on my 17 year old teachers pension before I left.
I was advised to leave it in the UK, and wait to see if the Govt get their changes thru. If they don't my pension as a UK teacher has a lot of benefits.
Should I consider a transfer within the four years - would it still be worth my while?
Quick Q if I may
I arrived this year. I sought advice on my 17 year old teachers pension before I left.
I was advised to leave it in the UK, and wait to see if the Govt get their changes thru. If they don't my pension as a UK teacher has a lot of benefits.
Should I consider a transfer within the four years - would it still be worth my while?
Obtaining a transfer value is free but can take 3 months. If you are transferring within the first 4 years, then you may be able to make the transfer tax free (Which is a big benefit). There will be other factors to consider as part of your decision such as what happens if I die, where will I retire, whats more important a Lump sum of money or a regular income.
Tax is just one angle. Consider the whole picture before making a decision and make sure it is an informed decision.
#69
Re: NZ Tax Bill Introduced - UK Pensions
Just a reminder - if you are concerned about the income being taxed in the UK, remember you have a tax free allowance there.
#70
Forum Regular
Joined: Jan 2013
Location: North East England (for now)
Posts: 95
Re: NZ Tax Bill Introduced - UK Pensions
Seems like a good way to deter retirees from heading to NZ. If they're retiring to NZ, they obviously have a comfortable amount of money behind them. Why the government wants to be greedy and tax it is ridiculous. They'd make more money through sales taxes by making it easier for them to retire there... IMO.
But then, I think pensions should be wholly tax free anyway.
But then, I think pensions should be wholly tax free anyway.
#71
Re: NZ Tax Bill Introduced - UK Pensions
Once you become a NZ tax resident, there is a form to complete to notify the bank/the pension company/ other income sources that you are not UK resident and therefore not to deduct tax at source. More at this link.
#72
Re: NZ Tax Bill Introduced - UK Pensions
Seems like a good way to deter retirees from heading to NZ. If they're retiring to NZ, they obviously have a comfortable amount of money behind them. Why the government wants to be greedy and tax it is ridiculous. They'd make more money through sales taxes by making it easier for them to retire there... IMO.
Now because you are 55, you can start taking money out straight away and pay NO TAX on those withdrawals. *
Not a bad country afterall ......
*Withdrawals are subject to maximum limits depending on age on time in NZ
*Investments in NZ are taxed on the first 5% growth
#73
Re: NZ Tax Bill Introduced - UK Pensions
With regards to the tax free allowance in the UK, once you become a tax resident of New Zealand, then NZ has full rights to worldwide income. Therefore any income earned from the UK must be declared in NZ. The tax free allowance you mention is no longer relevant.
Once you become a NZ tax resident, there is a form to complete to notify the bank/the pension company/ other income sources that you are not UK resident and therefore not to deduct tax at source. More at this link.
Once you become a NZ tax resident, there is a form to complete to notify the bank/the pension company/ other income sources that you are not UK resident and therefore not to deduct tax at source. More at this link.
#74
TAX LAW PASSED !!
The tax bill has now been passed in Parliament.
Here is an article from The NZ Herald: http://www.nzherald.co.nz/business/n...ectid=11168202
Here is an article from The NZ Herald: http://www.nzherald.co.nz/business/n...ectid=11168202
#75