New Zealand tax laws in respect of foreign pension lump sum payments and transfers are changing as the Inland Revenue chases revenue from pension transfers to New Zealand. The main points of these changes are:-
1. Changes potentially affect up to $10 billion in foreign superannuation and are not limited just to UK pension transfers.
2. All future payments and transfers will be taxable as income (the portion of which is dependent on how long someone has been in New Zealand – the longer in New Zealand the higher the percenatage of the transfer is included as income) – all the way up to 100%.
3. There is a small window of opportunity for people that have not yet transferred their pensions to do so NOW to take advantage of the amnesty rate of only 15% of the transfer being included as income (prior to April 2014)
4. The new rules will include previous foreign pension transfers that have taken place to New Zealand.
The size of the foreign pension market is almost as large as KiwiSaver industry in its entirety at present.
What might these changes mean for you?
If you have a UK pension fund it is time to get proactive and get some good advice to ensure that…
- You reduce your tax liability
- Increase your pension options
- Have control of these funds
If you would like further advice please call Lynda today on 021 667934