Author Archive for: ‘simon’

Theresa May’s election shambles save UK final salary pension holders

The Conservative government had sought to address the burden of pension commitments in its election manifesto, with a plan to decouple annual rises in pensions from inflation from 2020. But when the election returned a minority government for May propped up by Northern Ireland’s Democratic Unionists, the commitment was abandoned.

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UK final salary transfer values falling

U.K. pension deficits fell to the lowest level since the end of 2015, dropping 10 percent in June as yields on government bonds rebounded. The gap between the assets and obligations of U.K. defined-benefit pension plans dropped to June 30, 2017, according to the latest PricewaterhouseCoopers LLP’s Skyval Index. The index tracks around 6,000 defined benefit schemes in the U.K. …

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The Evolution of New Zealand QROPS

Having been involved in pension transfers since 1999 we have seen it all. What started out as a cottage industry helping New Zealanders and British expats that had moved to New Zealand get their pensions into the same the country that they lived in has grown into something bigger and ultimately better.   History can teach us a lot, because …

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UK budget: Overseas transfer charge

On the 9 March 2017, the UK Budget introduced with immediate effect an “Overseas Transfer Charge” (OTC) which is a 25% tax charge on transfers to QROPS from UK registered pension schemes unless: The member is tax-resident in the same jurisdiction as the receiving QROPS. So a transfer from a UK registered scheme to a New Zealand QROPS for a …

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Brexit is leading to “eye-watering” UK final salary scheme transfer values driving more transfers – but for how much longer

For decades people in the UK have been told that final salary (or defined benefits) pensions are ‘gold plated’ and the perception has been established that defined benefit pensions should never be transferred. This has always been the opinion of the Financial Conduct Authority of the UK and of course the schemes managing these pensions, with an advance payout of …

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Foreign currency fees in New Zealand schemes

Most New Zealand QROPS superannuation schemes are in the business of passing on benefits to their members. This extends to foreign exchange rates. Many have negotiated really good deals with banks and get exchange rates a little bit above a wholesale rate. These rates are almost always better than money brokers such as HiFX so members really are getting the …

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New FMCA rules reduce number of NZ QROPS

FMCA Pension Transfers E1462160943393

On 1 December 2016 the number of New Zealand QROPS reduced dramatically, at that date there were only seven schemes that were open to new members and therefore capable of being QROPS. On the same date there were 31 New Zealand schemes showing on the ROPS list kept by the HMRC. It’s a big difference with serious implications.   Everyone …

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Despite Brexit concerns New Zealand QROPS come of age with UK pension transfers topping a billion dollars in last two years

For many years transferring a pension from the UK to New Zealand was not the norm with confusing legislation and tax compliance issues. All that changed in late 2013 when the Inland Revenue proposed a tax amensty on UK pension transfers that suddenly thrust the decision of whether to transfer under peoples noses. This led to a wall of UK …

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Brexit pension transfers consequences

There has been a lot of talk of the general implications of the Brexit vote. But what, in practical terms, is it likely to mean for those with UK pensions and those thinking about transferring their pensions out of the UK. In this article we look at each type of pension, final salary and contributory, to understand the implications for …

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Deciphering the Inland Revenue tax notices on UK pension transfers [Infographic]

  Much has been made recently of people getting tax notices from the Inland Revenue for pensions that they had transferred to New Zealand. Should everyone be crying for people that have received tax bills? Should everyone be worried about the Inland Revenue chasing more people for tax? Or should we all just bury our heads in the sand and …

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