​Why has the Chancellor introduced this policy?

This new legislation is aimed primarily at individuals who retire in one country, but "park" their pension in a more tax-friendly location, such as an offshore tax haven. The UK Treasury commented, "This charge is targeted at those seeking to reduce the tax payable by moving their pension wealth to another jurisdiction."

The team at GBPensions regularly hear from clients who have been telephoned out of the blue by overseas companies extolling the benefits of a pension transfer. It would appear that, more often than not, these clients have been found via social media of one sort or another. On one occasion, our client attempted to find out which financial advice firm was contacting her, only to be told, "I'm just a phone rep. I don't know who I'm making these calls for."
 
We agree with our clients; this is a highly unprofessional and unethical way in which to conduct business.

2016 has been something of a rollercoaster ride in the world of pension transfers, with changes proposed and imposed by the authorities in both Britain and New Zealand.
 
Most recently, Chancellor of the Exchequer, Phillip Hammond, used his Autumn Statement to announce "sweeping changes" to the UK's pensions legislation. These were formalised in a draft Finance Bill issued on 5th December.

In the third of three blogs, British expat Lizzie Brandon talks about her joy at being accepted as an official New Zealander.
 
On 15th August this year, my husband Sean and I took the final steps on our journey to NZ Citizenship. Our Citizenship ceremony at the Bruce Mason Centre, Takapuna was a genuinely emotional experience. 

As a Permanent Resident of NZ you already have the right to vote, plus a few other entitlements only reserved for the citizens of some countries. Our MC told us therefore that to apply for Citizenship was a decision lead by the heart rather than the head. I got a bit teary.

Sean and I married in October 2001, and if someone had said to me then that we'd be living anywhere but Bedford, I would've laughed out loud. But life can take strange and unexpected turns…
 
I arrived to start our new life in Auckland on 28th June 2008. The fur family arrived 3 days later and my lovely husband two days after that.

Looking back I still can't believe that we did it - but I'm so glad that we did.

​Since HMRC (Her Majesty's Revenue & Customs) introduced Pensions "A" Day (6th April 2006), NZ residents have had two main options when it comes to transferring their UK pension. Having weighed up the pros & cons, they can either choose to leave it where it is or they can transfer it to a New Zealand registered superannuation scheme which has been listed by HMRC as a QROPS (Qualifying Recognised Overseas Pension Scheme) and therefore able to receive funds.

GBPensions now give their clients a third legitimate option: to move their pension into a UK registered SIPP (Self-Invested Personal Pension). 

At the time of writing (June 29th 2016), GBPensions is of the view that perception might be worse than reality – at least for anybody considering moving their pension.

​Since Britain voted to leave the EU, there have been some currency fluctuations. We do not offer advice on foreign exchange matters, but we can confirm that the NZ QROPS (Qualifying Recognised Overseas Pension Schemes) used by GBPensions can hold investments in Sterling, so a transfer does not necessarily have to mean an immediate currency conversion.

​If a pension transfer is appropriate for you, GBPensions is now offering a legitimate alternative to the usual UK pension transfer to a NZ registered QROPS (Qualifying Recognised Overseas Pension Scheme.) Our clients now have the option of transferring to a UK registered SIPP (Self-Invested Personal Pension) – a choice which could provide significantly better benefits for some clients, in terms of tax and access to funds.

In fact, GBPensions' director Tony Chamberlain is adamant that, if a client is aged 55 or older during their first 4 tax years of residency in New Zealand, they should investigate the option of a SIPP as well as a NZ QROPS. The benefits are not limited to those who fall within these criteria however, and other clients – depending on their circumstances and goals – should also consider using a SIPP for their transfer.

There have been several major - some might say draconian - changes to legislation affecting the transfer of UK pension schemes in the last year or so. First we had the cut-off date for transferring unfunded statutory (public sector) pension schemes, then we had a significant cull of the NZ ROPS list (which notably affected KiwiSaver, of course.) The next overhaul coming later this year will seriously impact how much of a NZ superannuation pension fund can be accessed and when.

Presently, UK regulations allow a New Zealand superannuation scheme with QROPS status to pay members a lump sum amount of approximately 30% of their transferred UK fund at age 55, plus provide an income for life.