[Smiler]

Ok before anyone says it, I know it doesn't take much! :laugh

I've spent days trawling through old threads which has been entertaining but I'm getting more and more confussed about UK2NZ pensions, family trusts, tax fiddles/breaks. The OH queries everything I'm saying with That can't be legal.

Can anyone recommend a nice, friendly, preferably patient :o but on the ball financial advisor here in NZ.

I'm more than happy for a pm if you don't want to splash the info in public. :D

Bewildered of Wellington.

[Carol]

Try your bank Deb........that's what we pay them for.

:-)
C

[Smiler]

We were trying to avoid that as OH works for them (and I won't say any more)as good as they have been so far.

;) ;)

D x

[Wannaway]

Smiler,

I work for a firm of accountants who used to have a small financal advisory team. It was a business my firm did not wish to continue in so the team left and set up on their own as an independent financial advisory firm. They still come highly recommended by the people I work with in the firm, I can get their contact details and PM them if you like.

Lee

[Smiler]

Worked it out :clap

Spoke to 3 banks ( 2 didn't bother to return my enquiry for 5 days). One sat me down and went through my options very s-l-o-w-l-y- for my brain. AXA control the fund, could take out a % early. No transfer charge and 1.5% yearly account charge

Spoke to a financial advisor in Auckland (recommended by Wannaway :nice1), very impressed, extremely helpful on the phone, spoke to one of the partners for a while, gave me useful info but they don't do many pension transfers. They gave me the newsletter, charge $150 normally (an hour) and we may use them in the future for other business.

Asked Brittania Finance to call. 3 hours 10 mins later I ordered pizza! Informative but messy presentation, lots of form filling on the night. They charge 5% of transfer value then 1.0% yearly. Option's if you want to cash in some pension money (which I don't) ING control the fund.

So have gone with the bank! They sent me away to think about it, wouldn't let me sign on the day. So far have kept me up to date with progress. Just need to get the money here before the 6th April and I'll relax. :cheers

And then I guess that means I'm staying.............:D

Deborah

[Moorf]

Quick question - do you have to work with or talk to your UK pension people at all or do the NZ based peeps do all that for you so you only have to deal with one person? Have you told your UK pension people what your intentions are?

[Smiler]

The Bank do it all, ( Brittania would have too) I just signed a form giving them permissh to do it.

But I have already written to the pension people in the UK to ask them to prepare final valuation statements and telling them I will be instructing someone in NZ to act for me. I know that only one person deals with one of my pensions but I'm hoping I can give them a head start, as this needs to be completed before 6th April.

Deborah

[Rabbit]

Good move Deborah, e.g. giving them a heads up.

I spoke with Standard Life last week (not that I want to do a transfer), they said that any transfer under old rules must complete by 6th April, otherwise any transfer after that will fall under the new regime. If the transfer is outstanding at 6th April, then it will be caught under new rules.

On the upside, I mentioned to Standard Life, that many people had expressed the view that transfers take a few months, the woman was supprised at this and said they could be done in a few days.

Employer related schemes are probably more complex and take longer.

Why it should take so long? - the mind boggles, perhaps there is just a big pile, last in last out?

[Smiler]

Rabbit

Yes I'm hoping I can get it completed before then. I'd rather have control of my pension here aged 55, including having a small say in what investments are done, than have to leave it in the UK til I'm 65. By which time Gordon Brown will have left enough for me to buy a loaf or bread.

I really don't understand in this day and age why it should take so long. OK if they won't accept email because something needs signing, what's wrong with fax? Or at least emailing the forms, allowing me to sign and return by snail mail.

According to one advisor, one of my companies does it really quickly and just sends a cheque. The other one an LGPS, is bound to be s-l-o-w, they wouldn't even accept a change of address by email! Crazy, they know I left, they know I'm here, I guess they don't believe the 6 million lottery win rumour.:D

I really can't understand why it should take months. It seems simple enough from where I am.............

Deborah

[Moorf]

I think I must have missed a thread and can't find it... what new rules? :confused:

[Smiler]

As I understand from the financial advisors, if you don't transfer your pension out of the UK before 6th April, it has to stay there, locked up until you are 60 or 65.

There was some doubt about the final implications of the new rules when we were making enquiries a few weeks ago and now it seems you could have your pension transferred but pay a huge sum in transfer fees.
From the Britannia site
Pension transfers - UK tax implications

New UK regulations coming into effect from 6 April 2006 will mean a tax penalty payment of 55% deducted from your UK pension funds before transfer. This tax imposition will apply to all transfers to overseas schemes which are not "Qualifying Recognised Overseas Pension Schemes".

There are further tax implications which will apply to persons accessing funds from overseas schemes. From 6 April 2006 any lump sum withdrawal not sanctioned by UK regulations will attract a tax penalty of 55%. This penalty will be deducted at source, or left to accrue as an accumulating UK tax liability against an individual's name.


But thats the sales blurb from the website. :D and we were not told about that 3 weeks ago.



D

[Moorf]

Thanks Smiler.


Well, that's me in panic mode... :exit

[Smiler]

http://www.telegraph.co.uk/global/main.jhtml?xml=/global/2005/12/28/cash753.xml&sSheet=/portal/2006/01/04/ixportal.html

Oh sorry if it stretched the thread, some more bedtime reading.......

[Michelle and Richard]

does anybody have any idea what consitutues an "Qualifying Recognised Overseas Pension Schemes" we have just looked at the process with ASB and certainly nothing about this was mentioned to us however back in October when we first looked into it I remember something being said that its the schemes that you can get you hands on the money at 50 that are affected, Bank schemes have more rules and regulations so I think (hope) are OK. Anybody else any idea ??????


Michelle

[Smiler]

Michelle

I'm not sure what you mean, is this something that ASB have said or is your Uk Pension one of those? One the Brittania site there is a list of companies they have worked with, if that helps. ASB didn't even bother to call me back.

My understanding is that (all depending which scheme you have here) you can access it earlier than the UK. You can also take up to 49% of the value at transfer time, ok if you need to release funds for a house, I guess.

I've compared the bank one I'm going with, to the 'idependant finacial advisor' and the only difference is with the IFA I could have had control of where 5% of my money is invested. Oh that and the charges :eek:

Deborah

[Avalon]

does anybody have any idea what consitutues an "Qualifying Recognised Overseas Pension Schemes" we have just looked at the process with ASB and certainly nothing about this was mentioned to us
Michelle

I think this just means a Pension Scheme over here that is registered with the Uk inland revenue.

In practice - it means you have to make sure thet the pension you want in NZ is actually "authorised" by the Uk IR to take your pension transfer.

You shouldnt have a problem with the banks, and I know Brittania is OK.

Just be aware that if you go with ASB - you cant release ANY funds until you are 50 - not sure if thats important to you.

[Michelle and Richard]

Hi

Yes I think the ASB scheme is an approved one but I need to check. We can access 20% of the funds immediately and the rest at 50 but as thats not the reason we are transferring so I wasn't too bothered about that plus its not our main pensions. My main concern was charges and the other non bank pensions seemed to have hefty charges to access you money now.

I think the ones that are not going to be approved are the ones that entitle you to get your hands on all or at least 50% of the funds now but I am going to double check.

The annoying thing is that we have had masses of information through from our pension funds in the UK recently talking about all the changes but nowhere did I see this mentioned.

Thanks for your answers, I only dip into this forum occasionally as we have been here for a while and many of the old faces we came out with have disappeared. Good to know I can still get helpful tips !

Michelle

[Rabbit]

Transfers to a qualifying recognised overseas pension scheme (from the UK)

A registered pension scheme can pay a transfer value to a qualifying recognised overseas pension scheme. A recognised overseas pension scheme is "qualifying" if HMRC has been notified and provided with prescribed undertakings and information relating to the scheme.

For the purposes of this section the definition of a recognised overseas pension scheme (see section on Transfers from recognised overseas pension schemes) is extended to include schemes which are established in other countries provided that the scheme has furnished evidence that it complies with the following requirements:

at least 70% of the transferred amount would be used to provide income for life

retirement benefits are not payable before age 50 (55 from 2010) unless the member is in ill health


membership of the scheme is available to residents of the country in which it is established

Tax charges

A transfer to a qualifying recognised overseas pension scheme is a benefit crystallisation event for the purposes of the lifetime allowance charge.

The following tax charges may be applied on any payments if the member is resident in the UK or has been resident during the tax year in which, or in any of the previous 5 tax years before, the payment is made:

Unauthorised payment charge - 40% of any unauthorised payment


Unauthorised payments surcharge - 15% if any unauthorised payment(s) in a 12 month period exceeds 25% of fund


Short service refund lump sum - 20% of member's contributions up to £10,800 and 40% of any excess


Special lump sum death benefits charge - 35% of any lump sum death benefit payable in the event of death after taking benefits and before age 75


Trivial commutation and winding up lump sum - first 25% of unvested funds is tax-free and otherwise taxable as income


Trivial commutation and winding up lump sum death benefit - taxable as income

http://www.abbeyforintermediaries.com/insight/tt2105.html

[willsken]

Ithink I understand, but can you confirm for me. If we transfer to an approved scheme then there will not be penalties? :confused:

[Rabbit]

Nicola, I am not a financial adviser, so I cannot answer the question directly.

The attached paper from HMRC has a little more information and includes a telephone number that may be able to provide further advice.

The other thing to note is that it is possible after 5th April 2006 to take the 25% tax free sum from a UK Pension fund at age 50 or above without drawing a pension.

http://www.fco.gov.uk/Files/kfile/Pensions%20for%20individual%20int%20v2,2.pdf

I intend to leave my Pensions in the UK for atleast the next five years as I can't see any advantage in transfering at the moment (in my case). I will probably take my 25% tax free lump sum after I am 50, and consider a transfer after that, depending on what the tax advantages are at that time.

[willsken]

Thank Rabbit I'll have a look now. Why is everything so complicated! :(

[Mr Brillo]

[QUOTE=Rabbit]Transfers to a qualifying recognised overseas pension scheme (from the UK

I have a Personal Pension in the UK and it strikes me that unless you are planning to try to release a large amount of you pension fund before you reach retirement age, there really is no need to use one of these pension transfer specialists. Can anyone confirm any experience of this and whether I am correct.

I have heard about the three year migrant tax holiday does this relate only to pensions or other investments as well????? Please help - I am about to see a UK based NZ investment and tax advisor and pay for the priviledge! They are slightly scaremongering suggesting I could pay up to 55% tax if I don't get the transfer right. Having read the blah and HMRC links on other posts, it seems to me that so long as the scheme to be transferred to is recognised by HRMC, there is not tax to pay.

Also, whats all this about paying tax on the increase in exchange rate?? Got me completely confused.

Can't wait until all this planning etc is over and we get there ---finally :raebanana

[Rabbit]

I have a Personal Pension in the UK and it strikes me that unless you are planning to try to release a large amount of you pension fund before you reach retirement age, there really is no need to use one of these pension transfer specialists. Can anyone confirm any experience of this and whether I am correct.

My understanding is the same as yours

I have heard about the three year migrant tax holiday does this relate only to pensions or other investments as well?????

For those arriving after the 1st April 2006 this is likely to increase to a five year exemption.

Please help - I am about to see a UK based NZ investment and tax advisor and pay for the priviledge! They are slightly scaremongering suggesting I could pay up to 55% tax if I don't get the transfer right.

If you do not want to release funds - why are you considering a transfer?

Having read the blah and HMRC links on other posts, it seems to me that so long as the scheme to be transferred to is recognised by HRMC, there is not tax to pay.

- That is my understanding also, but I have not checked this with HMRC

Also, whats all this about paying tax on the increase in exchange rate?? Got me completely confused.

What reference are you referring too - I Can't see any comment on this within the thread.

Can't wait until all this planning etc is over and we get there ---finally :raebanana[/QUOTE]

Welcome to the Club

Some References:
http://www.stuff.co.nz/stuff/0,2106,3369710a13,00.html

http://www.budfin.co.nz/upload/Tax%20issues%20for%20individuals%20migrating%20to% 20New%20Zealand.pdf

http://tvnz.co.nz/view/page/425825/658953

http://www.abbeyforintermediaries.com/insight/tt2105.html

http://www.fco.gov.uk/Files/kfile/Pensions%20for%20individual%20int%20v2,2.pdf

http://money.guardian.co.uk/movingoverseas/story/0,,1451837,00.html

[Mr Brillo]

Hi Rabbit

Thanks for replies

Much clearer - I will be fifty in three years - just in time to use my Personal pension if I wan't to. I was fairly sure that I could leave to grow for 3 years tax free in UK and then move to a recognised scheme - (do you know where I can find a list?) - also hopefully £/$ will improve a bit in my favour - but not so much that imports to NZ become too costly and therefore affect standard of living - a fair balance!

I saw the thing about tax on change of exchange rate in another thread - off to work now but will find this eve - UK time.

One other query - has anyone any advice re. endowment policies - we sold our house but have kept these in payment. I have a feeling that they may be taxed in some way and it might be wise to sell on the second hand market prior to leaving.

Another day less..............