Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Temporary stay of execution on foreign pension transfers

Government grants a temporary stay of execution on foreign pension transfers

By Simon Swallow
December 5, 2013

The NZ government has today announced an extension to the deadline of the proposed tax amnesty for the transfer of foreign pensions to New Zealand.

Under the previous iteration of the rules the IRD had created a special amnesty that allows anyone that transfers their foreign pension to New Zealand prior to 1 April 2014 to declare only 15% of the transfer as income (which at the top tax rate is around a 5% tax on the total transfer value). This concessionary rate compares favourably with the up to 100% declaration of the transfer value as income (and according taxation) that is proposed under the new rules from 1 April 2014.

The rule changes have led to a mass migration of UK pensions to New Zealand. Yet many people with good intentions of moving their pensions to New Zealand have been caught by the inherent slowness of the United Kingdom pension providers, and the fact that many final salary schemes need to apply to the HMRC for what are called guaranteed minimum pension (GMP) valuations and that these valuations can take up to three months to process. Even where the schemes were not final salary recent regulatory changes in the United Kingdom are leading to longer times in getting pension transfer forms and payments being made even out of the larger UK schemes like Aviva, Prudential, Standard Life and Zurich.

So it seemed for many that the hope of getting the transfer to New Zealand on time to take advantage of the amnesty was lost.

Enter the NZ government who has now effectively extended the deadline of the tax amnesty by tweaking the legislation to state that anyone that has started the pension transfer process prior to 1 April 2014 will be able to apply for the 15% exemption.

This commonsense approach from the Government now allows people to see what the final form of the legislation will look like before initiating any transfer action. The legislation is expected to be finalised and passed later this week or next week.

So for the thousands of holders of public sector pensions, such as NHS, teachers pensions, armed forces or local government, there is now sufficient time to execute a pension transfer without having to stew over the slowness of the UK pension system. You just now need to ensure that you have an accurate and verifiable trail of transfer evidence.

This is an exceptional piece of good news for UK and foreign private and public pension holders (note that this legislation does not effect state pensions). To find out more information on how the changes might effect you go to http://qropsnz.com/nz-foreign-super-tax-changes/

To learn more about these changes, please contact:
Charter Square Media Relations
Office: (04) 212 4970
Mobile: 021 832 512
Email: info@chartersquare.co.nz

ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news