what to do with uk private pension?
 

Re: what to do with uk private pension?
 

I have chopped a couple of small AVCs in. The benefit of getting them over here on the QROPS approved system is because they are totally tax free. If you end up drawing your pension from the UK like my mate does from the UK army who also lives in NZ is that you get taxed at whatever tax rate you are on. This way it is ALL tax free. Before 5 FULL tax years on being a non tax resident of the UK you can take 50% out of the cash in value, after the full 5 yrs are up you can have the rest. I just got $5k tax free and will get the other 4 thousand next april. If the funds are under 10k GBP you do not get the option to 'park' your cash in an NZ GBP acct..they just change it up for you at the day's rate. That can be painful as I found out last month. Still its only money! The downsides are you never get the full cash in value from the Uk they knock a few % off and you will be charged 1-3% by the pension co in Nz that does the transfer.

Re: what to do with uk private pension?
 

Does he pay tax on it in the UK & then pay the difference over here? If so, tell him to give them hell over here, as our ex-army friend did, and only end up paying the UK tax. He got a huge refund:thumbup:
Sorry to go off topic!!

Re: what to do with uk private pension?
 

Hi, I realise that Malaysia is not New Zealand ;) but just interested in the full 5 years bit. I'm not actually sure if I can set up a QROPs, but are you saying, from the UK's point of view, if you are out of the tax system for more than 5 tax years, you can get at all the pension in cash if it is transferred into a QROPs?

Re: what to do with uk private pension?
 

We have a similar problem, hubby has a pension in the UK, we have been living in NZ for nearly 2 years. He turned 47 this year, and we are unsure what to do? Are we best waiting till we have been here for 5 years? Can we take any money out of the fund before we reinvest it?

Re: what to do with uk private pension?
 

Hi,

I am in a similar position in that I draw a UK Army Pension. I have been since I arrived over a year ago. I have paid UK tax on it since day one and I am under the impression that I can receive it free from NZ tax for 4 years but will then have to declare it and then also pay top up NZ tax to bring it to the correct level.

I would appreciate any comments from people in a sinilar situation or who knows the tax system.

Dave

Re: what to do with uk private pension?
 

We both have Local Government pensions and, from my research, doesn't seem to be anything we can with our pensions until we are 55.

Re: what to do with uk private pension?
 

I also know that Aus isn't NZ but I'm on a police pension. NIL tax is payable on pension income in the UK if you are normally NON-resident there. I pay income tax in Australia on my UK pension income and no tax at all in the UK.

I can't think that NZ doesn't have a similar aranagement with the UK. But in any event, if you don't live in the UK you shouldn't be paying any UK tax on pension income. AFAIK.

Re: what to do with uk private pension?
 

Many thanks for the info....:thumbup: That is what I have been led to believe is the case for NZ.:)

Re: what to do with uk private pension?
 

Dave,

I've just put a new thread on the forum, hope it helps, or pm me with any q's.

Bruce

Re: what to do with uk private pension?
 

I think you've got it about right, Dave.

As a new immigrant your overseas income is tax free for the first 4 years.

After that, you will have to pay the NZ Government the difference between the tax you have already paid in the UK and how much you would have paid in NZ. This applies even if you dont physically bring the money into NZ.

Re: what to do with uk private pension?
 

A friend of ours fought this with respect to paying tax on his British Army pension in New Zealand as well as the UK & he won:thumbup: (rightly so, IMO) Now only pays it at source in the UK & received a 4 year refund from the NZ Taxman:thumbup:

Re: what to do with uk private pension?
 

Hi Mickey_D

This sounds like good news:thumbup: Do you know on what grounds he appealed and how he went about it? Is he still earning over here and paying tax his normal tax rate. Any assistance is appreciated.

Dave

Re: what to do with uk private pension?
 

Basically he kicked up a stink about it, wrote to tax office, local MP etc. etc.
His argument really was why should he be paying tax twice on something that had nothing to do with NZ. He earns a little here & pays tax as normal.
I think it is a good argument & ought to apply to all pensions earned before coming here.
It did take him over a year to sort it out, but was well worth it.

Re: what to do with uk private pension?
 

Hi Just had a look at this post have to say we have just after 8years of been in NZ just done a transfer of all our pensions from UK we have done quite well and left them in a Sterling Acc till we have sorted out how to Invest as we will get more with the Rate paid in NZ.
The big Bonus for us due to age we have taken one amount out in Cash and it will clear all the Mortgage:thumbup::thumbup: as we could take up to 25c of what the total value is.

The guy we have used is from the UK and lives just out side Ch-Ch will give you Free Information on what is best for you.