Taxation Issues
UK Pension Transfers to NZ
[ Comparison UK vs NZ pensions- transfer UK pension to NZ ] [ Taxation Issues - UK NZ Pension Transfers ] [ UK NZ Pensions FAQ ] [ Glossary of UK Pension Terms ]
Under current tax legislation in New
Zealand (NZ) all earnings from Superannuation funds are taxed
at 33%. All benefits/withdrawals are tax free.
Generally there is no tax payable when
a UK pension fund is transferred into a New Zealand (NZ)
approved superannuation fund - refer to FIF exemptions
below.
If your UK pension fund is employment
or self employment related and you only made
contributions to it before you became a resident of New
Zealand, then you will be exempt from
Foreign Investment Fund (FIF) Regulations.
If you acquired an interest in a
UK pension fund which was NOT employment or self employment
related before you become a resident in New Zealand you
will be exempt from the FIF regime for the rest of the
income year in which you first become resident, and for
the next three income years (four years).
After this exemption period has
expired, you are then required to declare your interest
in your UK pension fund to the New Zealand Inland Revenue.
Income tax will then be levied on any gains the fund
makes each year.
There is a possibility that should you leave your
pension fund in the UK and at retirement take the Tax
Free Cash sum, this may be subject to tax in NZ, even
though you have left your funds in the UK. New
Zealander's are taxed on their world-wide income.
The tax advantages to
transfer are:
[ Comparison UK vs NZ pensions- transfer UK pension to NZ ] [ Taxation Issues - UK NZ Pension Transfers ] [ UK NZ Pensions FAQ ] [ Glossary of UK Pension Terms ]
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