New Zealand QROPS are they right for you?
It is currently possible to take your UK pension as a 100% lump sum by transferring to a New Zealand QROPS.
It seems certain that due to changes in QROPS rules proposed by HMRC, the UK tax authority this loop hole will be closed from 6th April 2012.
The good news is that when the proposed changes in QROPS rules are enacted New Zealand QROPS will still be a very attractive jurisdiction. Payments of pension income will be made without the deduction of income tax at source. The new rules will mean that a maximum of a 30% of the value of the pension pot can be taken as a pension commencement lump sum and the remaining 70% will provide a pension for life.
New Zealand QROPS Status
| Changes in UK pension legislation are usually brought into force at the beginning of the UK tax year. HMRC released draft legislation recommending changes that will affect what Overseas Pensions Schemes will have to do to maintain | their QROPS status from 6th April 2012. It is looking very likely that New Zealand QROPS will be the number one choice for the thousands of UK pension holders that transfer their UK pension into a QROPS every year. |
New Zealand QROPS compared with Guernsey
| Guernsey, the other major jurisdiction that has offered a tax free income solution may lose their allure. Again as a consequence of the proposed draft legislation payments of pension income from a Guernsey QROPS which are currently paid without the deduction of tax would be taxed at 20% from April 2012. This will affect all holders of Guernsey QROPS regardless of when the transfer was made. |
The reason for this is simple. If you are a Guernsey resident and your pension is situated in Guernsey then 20% tax is deducted at source when the pension provider sends your pension payment to you. The UK tax authority HMRC have decided that if a Guernsey Pension is required to deduct tax in respect of Guernsey residents then a Guernsey QROPS should also be required to do the same for non Guernsey residents. |
New Zealand the New Guernsey?
| New Zealand on the other hand does tax New Zealand residents pensions so are able to pay pension income to non New Zealand residents free of tax. QROPS will continue to provide excellent opportunities for UK pension holders and a New Zealand QROPS will, in many cases be the optimum QROPS solution. |
There are many different New Zealand QROPS to choose from. And although New Zealand QROPS are an attractive option for many it may be that another QROPS jurisdiction would be better suited to your individual needs and requirements. |
“Free No Obligation Consultations”
We recommend that any person considering a UK pension transfer to a NEW Zealand QROPS, should seek QROPS advice from a QROPS transfer specialist.
We provide free no obligation consultations which give people the chance to find out what their pension transfer options are, what will be the benefits to them and or simply if QROPS are right for them.
To get immediate answers to your questions regarding New Zealand QROPS contact us to speak to the UK QROPS Pension transfer experts today.
Contact Us TodayCall: +44 207 0606 255 email: info@qrops-advice.com |
