Author Archive for: ‘simon’
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 …
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 …
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 …
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 …
New FMCA rules reduce number of NZ QROPS
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 …
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 …
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 …
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 …
Schedule Method of tax calculations for UK pension transfers
The schedule method seeks to levy tax on your pension transfer based on how long you have been in New Zealand since you accrued your UK pension. The longer you have been in New Zealand the greater the portion of the transfer will need to be declared as taxable income and put in your tax return. So, while the …
Exploring hidden value in CETV’s
We see many examples of people receiving and accepting a cash equivalent transfer value as gospel and what’s more their supposed ‘QROPS pension transfer’ experts that they have engaged do the same. So why do people blindly accept these transfer values? Usually it’s because they feel that the calculations that have produced them are extremely complicated. Our experience shows …
