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UK Pension Transfers - update for 2015

UK Pension Transfers - update for 2015

Old Apr 7th 2016, 9:41 pm
  #16  
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Default Re: UK Pension Transfers - update for 2015

Ok can anyone help us
We transferred our pension from the UK to NZ and placed it in a QROPS scheme.
The IRD have retrospectively taxed us for this transfer $19,000
Which the IRD want yesterday, they will charge us 9.2% per annum if we do not pay them
We are trying to access this money for the Westpac Retirement Plan that we transferred our UK pension into
We are 52 and 50 years of age so not entitled to this pension at this time!
If the Westpac Retirement Plan give us the money to pay the IRD, will we be taxed by the UK government for breaking into the retirement plan.
All we keep getting told is that this is very muddy waters and both governments have changed their laws.
But I really would like to know if I will get stung by the UK government as well!
Help
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Old Apr 7th 2016, 11:13 pm
  #17  
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Default Re: UK Pension Transfers - update for 2015

Hi Nero,
There are too many variables to your situation to be able to provide an answer in this forum. Pension transfers, QROPS and the rules that apply have changed many times over the last few years and one persons situation can be completely different to the next. The answer depends on many factors such as:
When did you make the transfer?
What where the QROPS rules at the time of transfer?
What is the withdrawal rules of the scheme that you are in?
The date that you left the UK (non-UK tax resident)?

Your situation needs professional advice. I'm afraid you need to find the right person with experience and knowledge to assist you.

chc4me
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Old Apr 7th 2016, 11:37 pm
  #18  
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Default Re: UK Pension Transfers - update for 2015

Originally Posted by chc4me View Post
Hi Nero,
There are too many variables to your situation to be able to provide an answer in this forum. Pension transfers, QROPS and the rules that apply have changed many times over the last few years and one persons situation can be completely different to the next. The answer depends on many factors such as:
When did you make the transfer?
What where the QROPS rules at the time of transfer?
What is the withdrawal rules of the scheme that you are in?
The date that you left the UK (non-UK tax resident)?

Your situation needs professional advice. I'm afraid you need to find the right person with experience and knowledge to assist you.

chc4me
Westpac where my retirement is held cannot help they are suggesting I speak to Kerry Boucher, have you heard of them?
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Old Apr 10th 2016, 6:29 am
  #19  
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Default Re: UK Pension Transfers - update for 2015

I hear what you are saying chc4me, I know it is a complex situation
What I would say to everyone, is be careful with what you do in relation to this, it is very complex and very few people seem to really have a handle on the situation.
We ended up paying $1600 to a tax consultant and ended up no better informed, on reflection I could have used this money to reduce our bills to the IRD.
Don't be fooled into thinking you can use your QROP retirement plan to pay your IRD Bill either, as there are whispers that if you do this the UK government could issue you with a tax bill, especially if you are not old enough to be breaking into your retirement plan!
Hoping the rest of you have a much smoother and easier journey than we did down the pot hole infested road.
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Old Apr 14th 2016, 8:16 am
  #20  
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Default Re: UK Pension Transfers - update for 2015

ChCh - this just came through my email:

THE CLOCK IS TICKING!

The rules relating to New Zealand superannuation schemes will be changing on 1 December 2016.

Currently clients may withdraw 30% of the original transfer value plus any growth, as a cash lump sum after age 55.

Under the new rules only 10% of the fund value will be allowed to be withdrawn.

All clients joining after 1 December 2016 will be under the new rules.



Less Money to Pay Your Tax or repay your mortgage:
When transferring a UK pension to New Zealand, there is sometimes a tax bill to pay. Some clients rely on their lump sum withdrawal to help them pay their tax bill to IRD. Others may wish to pay off their mortgage. With only 10% of the funds available under the new rule changes, this could have a substantial impact.


New Clients
If you would prefer to transfer under the existing rules, you should make a start on your transfer NOW.

If you have not yet transferred your pension then please contact us urgently.



More information:

These rules are being introduced under the Financial Markets Conduct Act (FMCA). The Legislation that relates to the new rules for New Zealand superannuation Schemes which can be viewed here:

· This is called “Schedule 12” of the Financial Markets Conduct Regulations 2014.

· Part 3 of the schedule refers to Permanent Early Retirement, an age 5 years before NZ Superannuation (ie age 60).

· Note the 10% withdrawal referred to is a guide only. The amount that can be withdrawn is formula based. The formula is in part 4 of Schedule 12 along with a worked example. Note that the wording states 10 years before the qualifying age of NZ Super (ie retirement age could change).

---------------------------------------------------------------------------------

We have dallied on the transfer over and then didn't realise it was 4yrs for your first entry and not 4yrs from Visa, so do have to pay some tax if we do transfer now. But would like to be able to access some at 55. From reading the above it we get it moved over before December we will still be able to take the 30%?
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Old Apr 14th 2016, 9:06 am
  #21  
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Default Re: UK Pension Transfers - update for 2015

Originally Posted by MrsFychan View Post
ChCh - this just came through my email:
---------------------------------------------------------------------------------

We have dallied on the transfer over and then didn't realise it was 4yrs for your first entry and not 4yrs from Visa, so do have to pay some tax if we do transfer now. But would like to be able to access some at 55. From reading the above it we get it moved over before December we will still be able to take the 30%?
Yes, 30%. Providing you are a member of the NZ scheme before the scheme converts to the new rules. Some schemes may choose to convert early (due to cost and regulation), but it is possible to join a scheme now with the current rules and complete the transfer later.
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Old Apr 29th 2016, 8:53 pm
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Default Re: UK State Pension Transfer

Hi, Just arrived in NZ, my wife & I opened our W'pac account from the UK & prior to leaving, about 4 weeks, we contacted works & pensions to arrange for our pensions to be sent to NZ, we were told at the time that it would take 4 weeks, however some one has told us it can take 3 months, is that for private pensions? Or is that completely wrong?

Thanks.
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Old May 1st 2016, 12:04 am
  #23  
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Default Re: UK Pension Transfers - update for 2015

Seems not much sympathy out there for anyone being stung by these big tax bills.

Gordon arrived from Britain in 2005 and transferred her pension to a New Zealand fund.

The Hawke's Bay resident did not give the transfer much more thought until December, when she received a letter from Inland Revenue telling her she had to pay $11,000 in tax.

She started to ask for help, from her local MP and tax agents, and discovered that hers was not an isolated case. Inland Revenue is approaching many migrants who it believes did not pay accurate tax on their pension transfers when they moved to New Zealand.
Migrant says it's not fair no one will accept blame for lax tax advice | Stuff.co.nz
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Old May 1st 2016, 4:50 am
  #24  
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Default Re: UK Pension Transfers - update for 2015

Originally Posted by Bo-Jangles View Post
Seems not much sympathy out there for anyone being stung by these big tax bills.



Migrant says it's not fair no one will accept blame for lax tax advice | Stuff.co.nz
Is this just if you have drawn down on your pension pot before you have reached retirement, even if you transferred the pension within the 4 year period? I assume that if you transferred during the 4 year period and don't take the pension until after 55 all good?????
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Old May 1st 2016, 9:55 pm
  #25  
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Default Re: UK Pension Transfers - update for 2015

Originally Posted by Bo-Jangles View Post
Seems not much sympathy out there for anyone being stung by these big tax bills.

Migrant says it's not fair no one will accept blame for lax tax advice | Stuff.co.nz
Pensions and tax are complicated. At the time that the ex-pat in the above article transferred her pension, transfer rules were quite different and the information from the IRD at that time was complex.

For all expats - I urge that you seek appropriate advice from a qualified and experienced adviser and tax expert before transferring your pension. Make sure they are experienced and specialize in this area, not just a generalist. Ask questions, lots and lots of questions! Do your own reading so that you are informed. If you are unclear on any point, ask until you are satisfied. Make informed decisions.

It is also wise to meet with a suitable Accountant on arrival in NZ. For one hour of the accountants time, it provides you with some certainty on tax matters. For many ex-pats, retaining a house in the UK, pensions in the UK, ISAs, shares or other investments can create tax problems. Holding large amounts in foreign currency can also create issues. One persons situation may not be the same as the next.
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Old Jun 3rd 2016, 12:08 am
  #26  
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Default Re: UK Pension Transfers - update for 2015

This Pension malarkey, is a minefield. I too have a frozen council UK pension fund. It's not worth much and I'm wondering whether it's even worth all the complications of even declaring it or transferring. Still s few years from retirement yet but it's something that will need to be
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Old Jun 15th 2016, 5:45 am
  #27  
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Default Re: UK Pension Transfers - update for 2015

Hi all, so ive been here for over 5 years now and sat on my arse in regards to changing my uk state pension.. im sure I have some other savings etc somewhere, just tucked them away somewhere..
Anyway, can someone recommend my first point of call so I can transfer it to somewhere please?.
Sorry for my naivety.. Just been living the dream
Thanks in advance,
Gary.
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Old Jun 15th 2016, 5:57 am
  #28  
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Default Re: UK Pension Transfers - update for 2015

Originally Posted by Wessa View Post
Hi all, so ive been here for over 5 years now and sat on my arse in regards to changing my uk state pension.. im sure I have some other savings etc somewhere, just tucked them away somewhere..
Anyway, can someone recommend my first point of call so I can transfer it to somewhere please?.
Sorry for my naivety.. Just been living the dream
Thanks in advance,
Gary.
Hi Wessa.

You don't transfer your UK state pension. What you will do is become eligible for NZ superannuation.

Do you mean you have a private or company scheme tucked away somewhere in the UK please?
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Old Jun 15th 2016, 6:04 am
  #29  
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Default Re: UK Pension Transfers - update for 2015

Originally Posted by BEVS View Post
Hi Wessa.

You don't transfer your UK state pension. What you will do is become eligible for NZ superannuation.

Do you mean you have a private or company scheme tucked away somewhere in the UK please?
Hi Bevs, long time no speak eh..


Who do I go to the set the superannuation thing up.
Yeah, im sure I have a private pension I joined for a while a few years ago. Do I need to take all my paperwork to someone?


Thanks Bevs.
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Old Jun 15th 2016, 6:30 am
  #30  
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Default Re: UK Pension Transfers - update for 2015

Your entitlement to NZ state superannuation ( think of it as just like the UK state pension) started ticking when you became resident in NZ. You do not need to set anything up at all. It will come to you automatically when you reach state pension age .

Give me a clue about the private pension. If you are uncertain or cannot quite remember then it is possible to track lost pensions through this service. We did this for my husband.

Yis. Long time no hear. Perhaps a bit of an update would be nice.
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