Transfering Pension

Just in the beginning process of transferring my pension into the NZ govt superannuation scheme................word of warning!

As of 6th April, new transfers are eligible to be taxed 40% by the 'Great British' Inland Revenue.

The options are:
Transfer it and pay the 40% tax straight off so you can access it earlier than 65.

Transfer it, don't pay the tax, wait til 65 and you don't have to pay the 40% tax.

Transfer it, don't pay the tax, access it early and the NZ Inland Revenue must dob you in to the UK inland revenue. If you never return to the UK ever, you get away with it. If you want to holiday/visit family/pass through you will be highlighted at the airport and tracked down.

We were going to cash in half of my hubbies now to put towards a house, but stand to lose about 40k if we do to the pockets of Britain's immigrant population and the like!!!

Gutted!

Fisheress :013:

Actually that is not quite the full story.

As long as you transfer it into an approved scheme, you can still take some of it out as a lump sum. If you use a pensions transfer company all their schemes should be approved.

This company sent through some information, they are also at the expos, so I would guess are reputable.
http://www.ukpensiontransfer.co.nz/faq.html

Hope you can work something out, Fisheress. Typical bad timing, just a bit longer and you might have made it.

Moggy

Mine is an approved scheme and I'm going through with a transfer company. This is the info she gave me last week. I'll check through my documentation again, but this is what I've been told.

Fisheress

Something smells 'fishy' ;) (pun intended)

Maybe double check with another company?

Found this on a website whilst checking my facts.

WARNING!

If you transfer your funds to a New Zealand scheme which is not a ?Qualifying Recognised Overseas Pension Scheme? you may incur a tax deduction of up to 55% of the transferred funds.

We recommend extreme caution as new regulations coming into effect from April 2006 may severely disadvantage persons transferring pensions through inexperienced so-called ?transfer experts?. These persons may have no knowledge of the new regulations - or may choose not pass on this information because they do not have access to an approved scheme.

Before proceeding with any transfer of pension funds we suggest you request confirmation in writing from your New Zealand adviser that you will not be affected by the new penalty tax rules relating to transfers to overseas pension schemes, and the new rules concerning unauthorised payments made from overseas schemes.


Have now emailed my adviser to see what she has to say....I know the scheme I'm setting up is recognised.....I've checked with my Teachers Pensions Company!

Will update this post if I learn anything

Fisheress

A quote form my adviser

As long as a transfer is made into a new QROPS, then you will not be affected by the tax unless you make an early withdrawal before your nominated retirement date.

So I was right...........it's only tax safe if you don't access it early

Fisheress