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

Gordon Campbell: On Populism And Labour 2017

For many people on the centre-left, populism is a dirty word, and a shorthand for the politics of bigotry. In this country, it has tended to be equated with the angry legions of New Zealand First. Who knew they were not just a reactionary spasm, but the wave of the future?

Certainly, at the end of this week, the next US President will have won office (at least in part) thanks to his proven ability at (a) scapegoating refugees and migrants (b) wooing neo-Nazis and racial supremacists (c) attacking journalists and judges (d) threatening to jail his opponents (e) urging nuclear proliferation and (e) by promising to restrict women’s rights to control their own fertility.

On the face of that campaign record, there wouldn’t seem to be much in common between Donald Trump and say, Spain’s centre-left populist party, Podemos. Yet arguably, the similarities could be instructive for the Labour/Green partnership here. More>>

 
 

Oxfam: 30% Of NZ Owns Less Wealth Than Our Two Richest Men

The research also reveals that the richest one per cent have 20 per cent of the wealth in New Zealand, while 90 per cent of the population owns less than half of the nation’s wealth. The research forms part of a global report released to coincide with this week’s annual meeting of political and business leaders at the World Economic Forum in Davos, Switzerland. More>>

ALSO:

Hospitals: Resident Doctors Set To Strike Again

Despite discussions between the DHBs and NZRDA over safer hours for resident doctors progressing during the last week, the strike planned for next week appears set to proceed. More>>

ALSO:

Not So Super Fund: More Burning Ethical Questions For Steven Joyce

Greens: Radio New Zealand reported this morning that the New Zealand Superfund has $77 million invested in 47 coal companies that the Norwegian Government’s Pension Fund – the largest sovereign fund in the world – has blacklisted. More>>

Activism: Greenpeace Intercepts World’s Biggest Seismic Oil Ship

Greenpeace crew have made contact with the world’s biggest seismic oil ship after travelling 50 nautical miles on two rigid-hulled inflatables off the coast of Wairarapa... Greenpeace radioed the master of the Amazon Warrior to deliver an open letter of protest signed by over 60,000 New Zealanders. More>>

ALSO:

Gordon Campbell: Why Tax Cuts In 2017 Would Be A (Proven) Bad Idea

Ever since the world fell prey to the mullahs of the free market in the 1980s, no amount of real world evidence has managed dispel one key tenet of their economic faith. Namely, the idea that if you cut income taxes and taxes on small business, a wave of individual enterprise and entrepreneurial energy will thus be unleashed, profits will rise and – hey bingo! – the tax cuts will soon be paying for themselves ... More>>

Liquor Sponsorship: Researchers Call For Ban On Alcohol Sponsorship Of Sport

“Due to alcohol sponsorship of sport, New Zealanders, including children, were exposed to up to 200 ads per hour they watched televised sport, and people watching football and tennis saw alcohol ads for almost half of each game,” says Associate Professor Signal. More>>

ALSO:

Mt Albert: Ardern For Labour, Genter For Greens

At the close of nominations, Jacinda Ardern was the sole nomination received for the position of Labour’s candidate for the Mt Albert by-election, says Labour General Secretary, Andrew Kirton. More>>

ALSO:

Earlier:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news