Lyfords UK pension transfer service

You can work out your tax obligation from the table above. Provided you have not opted out you are exempt transfer tax during the first four years, under transitional tax residency status. The table assumes the first 4 years are tax exempt and your tax liability starts from year 5.

If you became a resident on say the 22 April your exemption period ends 4 years after the month in which you qualified, that is fours years after the 30th April.

For example:

You immigrated to NZ on 22 April 2016 and you transfered your pension with a value of $100,000 NZD on 20 August 2021.

You are deemed to be a tax resident from the 1st May 2016. Your first 4 years are tax exempt. In August 2021 you would be deemed to have been a tax resident for 6 years. From the table above, of the $100,000 transferred 9.45% is treated as taxable income. If your top tax rate is 33% then $9,450 is deemed to be your additional taxable income for the financial year. The amount of tax that you will pay at your marginal tax rate of 33% is $3,118.50.

Disclaimer: The information given here is by way of example. Lyfords are not tax accountants and do not accept liability. We recommend you discuss your situation with an accountant experienced in these calculations.

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