QROPS New Zealand

New Zealand may be one of the farthest flung corners of the planet but about 30,000 British expats a year arrive on the islands to set up permanent home.

Any of these expats – and those already there – who have contributed to a UK pension can transfer their funds in to a QROPS scheme.

In New Zealand, pension fund growth in taxed along the way while benefits are not taxed at all.

But, transfers in to a New Zealand QROPS scheme from a UK pension are generally exempt from tax – and so are any benefits drawn down from the pension.

That means QROPS transfers are tax-free and no income tax is paid on any money paid out, not just the tax free lump sum.

Under some circumstances, UK pension transfers in to a New Zealand scheme may not enjoy a full tax exemption.

It’s important to get up-to-the-minute advice as tax rules between the UK and New Zealand are subject to change at short notice and this can drastically affect an investment decision about moving in to a New Zealand QROPS.

New Zealand QROPS may pay out enhanced tax free lump sums

Most UK pension schemes can be transferred in to a New Zealand QROPS – excluding the state pension or any fund where the saver has already bought an annuity.

Rest assured New Zealand QROPS fall with HM Revenue and Customs QROPS rules as the New Zealand government actuary has confirmed to providers that HMRC has written to him accepting kiwi saver and superannuation schemes meet all QROPS compliance.

As an added bonus, some New Zealand QROPS schemes also pay out more than the 25% tax free lump sum, this however happens under strict rules and reaching certain criteria.

The importance of qualified advice

Like many other QROPS schemes, New Zealand plans are great for some QROPS transfers and not so good for others, so it is essential to seek competent advice from a regulated and qualified financial firm with experience of dealing with New Zealand QROPS transfers.

QROPS.net does not offer financial advice, just the facts about QROPS pensions, if you are looking for specialist advice about New Zealand QROPS as we have a number of leading advisory firms that can help you.

The intricacies of New Zealand QROPS may mean an inexperienced adviser could miss a key point that might prove to be expensive in the future.