Wessa

So, im understanding a bit more now, thanks.
Thanks for the link. I will dig out the paperwork and give it a go..


Thanks again Bevs. I will post something up.

elaineesther1953

We will be receiving our state pension before we make the actual move to NZ can anyone advise the process needed to change to the NZ super and how will we know if it would pay the same as the UK state pension at that time?
If we kept the UK state pension would this be exempt from tax re the 4 year rule?

All comments welcomed

chc4me

When you arrive in NZ, head along to "Work and Income" (WINZ) and discuss the process with them. You can look up the current rates at at the WINZ website, in general, for a married couple both over age 65 the amount is $591 per week after tax. You must have the right to remain in NZ indefinitely, ie can't be a visitors visa etc. Some new migrants must live in NZ for a minimum of 5 years, however this rule does not apply to UK migrants because of the Social Security Agreement between the two countries.

If swapping to a NZ Superannuation payment, the NZ government will collect the amount that would have been paid by the UK (it helps offset NZ's costs) and pay to you the full NZ Superannuation amount. The NZ Superannuation payment usually increases annually.

If you choose to keep your UK state pension payments, this will be regarded as tax free in NZ within the first 4 years providing you stick to the rules. After the 4 years, all worldwide income must be declared to the NZ IRD and tax paid on that income in NZ. The UK state pension is not inflation adjusted outside the UK/EU.

Hope that helps.

elaineesther1953

Hi chc4me

Yes a great help thanks.. so could we keep our UK state pension whilst we receive the 4 year tax free period and then change to the NZ Super??

Thanks
Elaine

chc4me

That's correct, but do the calculation. With the currency below $2 to the GBP, the NZ Superannuation payment may be more in your pocket than the tax free UK State pension.

lipgloss1968

Hi There
Been a while since posted.
We managed to get over to NZ, land jobs, get Residency and buy a house in the space of a year! So been busy!
My question is I have a SIPP over in the UK and realise that I need to transfer within 4 years to avoid tax implications.
I do not plan to move back to the UK and I have been in touch with one of the many UK Pension Financial Advisors that have popped up. The info he gave me was that the laws are changing again in Dec 2016 whereby transfers after this date there can only be 9% withdrawals on becoming 55 instead of the 30% currently.
He told me that they can definitely get my pension over before then in the best scheme that will work for me after doing a report on my pension and charge a flat fee £1800.00
So was wondering if anyone had any guidance an this matter or experiences
Thanks for your time : )

chc4me

Hi Lipgloss,
There are changes in NZ that will restrict the amount that can be withdrawn at age 55, so if your goal is to withdraw as much as possible at age 55, then a transfer before the new laws are implemented would work. Withdrawals between age 55 and 65 will be on a formula basis and the amount that can be withdrawn increases with age.
In terms of the fee, the cost depends on the amount you are transferring. I do wonder why the fee is in a GBP figure? Is that in GBP or in NZD?
You are welcome to contact me for a second opinion.
Warm regards
chc4me

antglossop

Daft question: What happens to your British State pension if you migrate to New Zealand, do you lose it or can you transfer it?

chc4me

You can choose to keep your uk state pension or choose to switch to a NZ superannuation payment instead. I've written a number of posts on switching...will try to find one tomorrow when I'm back at a keyboard.

Reylan

Quick question. To qualify for a transfer within your tax free 4 year period does the 4 years period start when you enter the country to reside here (and therefore register with IRD) or when you first activate your visa? EG if you come over for a holiday and activate your visa say in 2010 then move over permanently in 2011 when does the clock start ticking? Thanks.

MrsFychan

starts the first time you step on NZ soil, caught us out.

elaineesther1953

Looking on the IRD website it says the 4 year tax concession starts from residency, ie. once you have an official place of residency or been in NZ for 183 days or more in one year! and in the latter would backdate to day 1 of the 183 days!!
Am I wrong??

MrsFychan

yep not sure on that, we only got residency in Jan 2012 but MrF was here on a temp work visa from Oct 2011. We thought it was from the Jan but turns out it was from Oct 2011.

elaineesther1953

So I guess that is where the 183 day ruling came in as Mr F in NZ 2011 although you came in 2012 so the 4 year officially would start from day 1 within the 183 days.
Anyone else confirm??

chc4me

When talking about tax, we need to separate Tax Residency from Permanent Residency or right to live in NZ (ie Visa's).

Tax residency starts from the day you arrive, subject to (within a 12 month period) spending 183 days in NZ OR from the time that you acquire a place to live.

As an example, if you arrive for a holiday, maybe to scout out the country and check which city you might settle in; then you leave NZ and not return for a period of time, then you have not triggered the Tax Residency. However if you return to NZ and spend a total of 183 days out of the 365 days in a year (including the number of days you were on holiday in NZ) then tax residency starts from the day you first arrived in the country.

Part two: acquire a place to live. If you are here on a short stay and buy a house to live in for when you return live in NZ, then this could start the Tax Residency.

If you are unsure, best to check with an accountant.