[Tim G]

Hi,

I really hope someone can help?

My name is Tim and am in receipt of a UK War Disablement Pension plus an Armed Forces Attributable Pension. I have just started the process of migrating to NZ but have concerns regarding the tax issues of these pensions.

As my medical condition has been deemed attributable to service and set at 60% here in the UK my pensions are Non-Taxable, however speaking to a few people in NZ, I am being advised that NZ will try and tax this income.

Any advice you could give me would be very much appreciated, as I have tried to make sense of IRD but they just send me a standard tax issues leaflet, explaining the 4 year thing, and agreements as to who I pay tax to.

Ideally I want it to remain Tax exempt as a NZ medical pension is.

I've spoken to Paymaster, Veterans agency but seem to be going round in circles.

Many, many thanks,

Tim Gamble.

[StevieD]

Can't help you on that one Tim, but you could always leave it in your UK bank account. Don't suppose it would do any harm.... would it?

[IanW99]

Sorry can't be much help.

If you haven't tried Work and Income - International Services yet, then it might be worth giving them a call, they should at least be able to point you in the right direction?

The United Kingdom, Jersey/Guernsey or the Republic of Ireland
NZ 0800 771 001 or from abroad + 64 4 978 1180

Veteran’s Pension
NZ 0800 553 003

or emai: international.services@msd.govt.nz

Ian

[lockstock]

OH is in receipt of a war pension too. The Veterans Agency and the Paymaster didn't seem to know what would happen. Thanks for jogging our memory though to get it sorted sooner rather than later. We didn't even consider that it may be taxed:confused:

[Tim G]

Thanks guys I'll give them a ring tonight.

I've been trying to sort this out for months but so far no one can give me a firm answer. Paymaster or the people who used to be paymaster are saying that nobody can tax it but really I need to hear that from the NZ end.

Thanks again,

Tim.

[jryorkshire]

I cannot help much either except to say that under the Double Taxation Agreement between UK and NZ Article 19 covers Pensions and annuities. This section states that as a resident of NZ your UK pension would be taxable only in New Zealand (ie NZ get sole taxing rights to the pension). The text of Article 19 is as follows:-

Article 19 Pensions and annuities

*

(1) Pensions (including pensions paid under the social security legislation of a Contracting State), and similar remuneration in consideration of past employment or services, paid to a resident of a Contracting State, and any annuity paid to a resident of a Contracting State, shall be taxable only in that State.

(2) The term annuity means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payments in return for adequate and full consideration in money or money's worth.


Hope this may be of some use.

Regards

John

[Tim G]

Thanks for your advice John,

My point is though that it is NOT taxed at all. And that's the way I'm trying to keep it.
I understand the the tax agreement would give me four years etc and that only one country can tax the pensions, but I want neither country to tax them. I'm not trying to pull a fast one or dodge tax or anything just trying to keep my entitlement as it is :D

Thanks again for your input, I will look into that and see if it helps.

Tim.