The relaxation of pension rules brought in additional tax revenue of £1.5 billion in the first year and in the second year it is expected to be £1.1 billion for the tax year 2016 - 2017.
The latest budget announcement, effective 6 April 2017, will not affect pension members who are New Zealand residents and who transfer their pensions into a NZ QROPS. But, the client will have to stay being a NZ resident for the exemption to become permanent.
From December 2016 all Superannuation Schemes in NZ have to be registered with The Financial Markets Conduct Authority FMCA and follow the rules set by the FMCA.
QROPS Pensions have a special exclusion from the above rules.
2015 rule changes to UK Pensions have resulted in some no longer being transferable to NZ
New rules for pension transfers made by the UK Government came into effect on 6 April 2015. While you can make withdrawals it is likely that 75% of your pension funds will be fully taxable in the UK if you choose not to transfer them into a QROPS in NZ. Your funds might be taxed at 40% Refer to the IRD Help Sheet HS304 to get your tax assessed in NZ only.
Some pension plans can no longer be transferred. Defined Contribution Schemes which have been funded by the tax payer such as NHS, Teachers' Pensions and the Armed Services can no longer be transferred. The only option for these schemes is for retiring members to be paid a taxable pension. This is often unsuitable for Brits who have emigrated from the UK.
BUT: Local Government Pension Schemes (LGPS) can still be transferred. Some people working in schools, the Police and NHS might be on the LGPS payroll enabling their schemes to be transferred. If you cannot transfer your pension due to the rule changes we will not charge you a fee for finding this out.
The UK Government is currently discussing if transfers for private defined benefit schemes should have the same rules applied as State funded pensions. If this happens private defined benefit pensions will also be unable to be transferred.
All Kiwisaver plans have been dropped from the QROPS list because Kiwisaver rules allowed early withdrawals for a first home purchase and significant financial hardship.
On 6 April 2016 the additional State Pension and part of the pension credit was abolished and replaced with a single tier state pension. The rate was increased from £113 to £155 per week.
Most people do not qualify for the full pension as their schemes were contracted out of the second State Pension and they paid lower National Insurance contributions as a result. To qualify for the full pension you need to have contributed into National Insurance for 35 years (instead of 30 years; the previous requirement).
From April 2015 death tax was no longer payable on a pensions if the deceased was younger than age 75. After age 75 the tax is payable at the beneficiary's highest marginal tax rate.
Ask Lyfords to write to your pension provider to see if your pension can be transferred (this is an obligation free service). Nothing is certain until your provider has confirmed that your pension can or cannot be transferred.
This depends on your options advised by your UK pension provider (after a pension transfer value and transfer pack has been received) Your adviser at Lyfords will consider: How good is the pension your UK provider offers you? How does it compare with transferring your funds to NZ?