Androlly6945

Hi I now have my nz residensy and we are moving towards the end of the year....my question is I have read somewhere that you can change your uk state pension to a nz pension can anyone tell me if there is a website I can go to for more info on this......thanks Dave taylor.

MrsFychan

welcome Dave

maybe check out the IRD site

http://search.ird.govt.nz/search/IRD...rseas+pensions

Androlly6945

Thanks mrsfychan I will have a look.

BlackCrossInResidence

Hi, I'm contemplating a switch so here's how I understand the rules and amounts at the moment.

Weekly Kiwi super (pension) if you're married or de facto is $319.23 a week (each) which is around 164 GBPounds per person. Add up to another $100 a week if you're single and live alone. It's taxed at your standard rate with no allowances that I'm aware of.

A couple of points:
The UK pension is frozen at the rate you received on informing IRS that you are resident here and, importantly, you can't usually disappear back to the UK for more than a few weeks without losing your NZ pension whilst you're away.

Also I'm not sure what would happen if you swapped to the NZ super and then returned permanently to the UK? Certainly you wouldn't be able to continue to draw NZ super but I'm not sure how HMG would act? Would you go back to your original UK pension or just the basic one or perhaps nothing at all for a time?

Also you'll also get a nice letter from HMG gloatingly informing you that, no matter how long you worked in the UK and paid taxes, that you will have less entitlement to UK benefits of any kind whatsoever than a Romanian gypsy big issue seller. Although they don't quite phrase it that way.

BlackCrossInResidence

Looks as if you can travel outside NZ for 26 weeks without any problem.

http://www.workandincome.govt.nz/ind...s-or-less.html

it also seems as if you are now able to claim for longer absences but that requires a visit to work and income.

http://www.workandincome.govt.nz/ind...-26-weeks.html

Androlly6945

Thanks for that blackcrossinresidence ......what I also need to know is about my private company pension does it effect how they calculate our kiwi super....

BEVS

What sort of private pension ?

No, It shouldn't impact on your state pension here in NZ however it will be taxed. Everything is taxed.

chc4me

Hi Dave,
This should be arranged via Work and Income. Here is a link for more information.

Unfortunately the paperwork is quite lengthy. You will need to supply dates of when you lived in the UK (and any other country etc). One important piece of information to keep in mind is that NZ has a Social Security Agreement with the UK. If anyone tells you that you have to live in NZ for 10 years before qualifying, you will be able to refer them to the Social Security Agreement. This means UK citizens qualify immediately.
Best wishes

chc4me

Mrs Fychan raises an interesting point with a reference to the IRD. As you will be a new migrant, you may qualify for the first 4 years tax free on any overseas income. Therefore you will need to work out if keeping the UK state pension (tax free) is better than swapping it for a NZ pension (Taxable). You can always elect to swap it to a NZ pension at a later date.

Once the 4 years are up, you will have to pay tax on your worldwide income.

Make sure you complete the correct forms to notify the UK authorities that you will no longer be a UK tax resident and therefore no tax to be deducted from Bank account interest, pension payments etc.

As a new migrant, I recommend hiring an accountant for an hour so that you are aware of your tax obligations in NZ.

BlackCrossInResidence

Once you're a NZ resident your UK pension, both state and private, is taxable - even in the first 4 years. Or at least mine was. It's other investments that are untaxed for 4 years.

Stormer999

Providing you complete the correct forms for HMRC (SA109, HS304) together with your Self Assessment submission, correctly completed, then you will be untaxed on your state and private UK pensions for 4 years in NZ as a resident.
These forms are not on line submissable but can be downloaded from HMRC site.

BlackCrossInResidence

I hope you're correct but are you certain that you don't pay tax in either country? Having filled in all the form with HMRC in the UK I'm no longer being taxed on my UK state or private pension (in the UK) but, even in the first four years of residency, NZ IRD insist that the UK pension is taxable in New Zealand.

Stormer999

Are you sure that NZ IRD know that you are a NZ resident? Have you completed
http://www.hmrc.gov.uk/cnr/nz_indiv.pdf which goes to NZ Inland Revenue for approval prior to being sent to HMRC ? Have you spoken directly to IRD so they know that you are a new NZ resident ? When I spoke to IRD they told me they would contact me at the end of the 4 year period.

BlackCrossInResidence

I've completed all the forms etc.

I have now been on the phone to NZ IRD for the last 36 minutes and am now on the third 'advisor' and still haven't being able to resolve this.

Stormer999

That sounds like a tax office! keep us informed.