With effect from 6 April 2012 the rules governing the transfer of UK pension schemes overseas have changed.
HMRC has reviewed the overseas transfer marketplace and tightened the rules determining when pension benefits can be taken, in what form and also increased the reporting requirements of the QROPS provider.
There remain however, a number of KEY BENEFITS in transferring to a New Zealand QROPS, including;
1.Pension income paid from an NZ QROPS is payable gross and not subject to NZ income tax, in contrast to pension income paid from a UK scheme, which is taxable.
2.At least 25% of the transferred funds can be accessed from age 55 as opposed to a maximum of 25% under the rules of most UK schemes.
3.Potential access of up to 100% of the balance of transferred funds from age 65, for NZ residents
4.Upon death, whilst receiving pension income, the entire residual fund can be passed to heirs free of any tax liability, as opposed to suffering 55% tax if still invested in a UK scheme.
5.No annuity purchase is required (which whilst no longer a legal requirement of a UK scheme, is often the only option available).
6.For NZ residents, ease and convenience of dealing with a local provider.