About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Monday, May 29th, 10:20AM
rss
Latest Headlines

QROPS providers surprised by tax change

New Zealand QROPS providers say they can work with a surprise change to the regime, revealed in Britain’s latest Budget.

Friday, March 10th 2017, 6:00AM

by Susan Edmunds

It was revealed that people looking to move a UK pension offshore will now face a 25% tax charge.

The charge will not apply if, at the point of transfer, the person and the QROPS scheme are in the same country, both are within the European Economic Area or the QROPS is provided by an employer.

Payments out of funds transferred to a QROPS after next month will be subject to UK tax rules for five years after the transfer, regardless of where the person was resident.

Gavin Dixon, chief executive of pension transfer firm Britannia, said the move was unexpected and would complicate some areas.

"It is really aimed at stopping people shopping their pensions around different global jurisdictions to avoid paying tax," he said.

"Money going into a UK pension is tax exempt as is the investment returns made by the pension so the UK has increasingly and in varied ways look to reduce people avoiding tax where they take the money out."

He said the exemption that allowed a QROPS transfer in the country in which a person was resident would help New Zealand schemes.

"People living in New Zealand can still transfer to a New Zealand QROPS without being affected by the 25% charge. Most of Britannia's clients still live in New Zealand– a few have moved back to the UK or Australia mainly.  This shows that pension transfers into Britannia are from people who have committed to New Zealand."

He said, for the type of person his firm dealt with, the pros and cons of transferring remained much the same as they were before.

"What the changes do reinforce is that QROPS is complicated in an area that is really important that people engage in and get the best answer for them.  It critical to engage with advisers who understand the market in depth and providers line Britannia who are well versed in the market."

Tags: QROPS

« Managers pay up for licensesConsumers 'deserve clarity' »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • InvestNow mix-up disappointing: Stubbs
    “Bobby is right. Simplicity is a reporting entity for AML/CFT. They can rely on a third party for CDD/EDD etc, but they need...”
    15 minutes ago by Barry Read
  • InvestNow mix-up disappointing: Stubbs
    “No Murray. Simplicity need to know where the money is coming from. The rules don't say they can just make an assumption....”
    1 day ago by Bobby
  • Insurers want tweaks to client-first duty
    “Curious to see Partners Life seeking a tightening of replacement rules after seeding its business with business rolled from...”
    3 days ago by paulgogol
  • InvestNow mix-up disappointing: Stubbs
    “I heard Simplicity's recent wealth innovation tour and excited about it. What are the timeline to reduce the minimum investment...”
    3 days ago by ramanan3012
  • InvestNow mix-up disappointing: Stubbs
    “@bobby I think you have got the wrong end of the stick. The issue isn't AML as you think and suggest. Rather more likely...”
    3 days ago by Murray Weatherston
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.79 4.99 5.35 5.59
ANZ Special - 4.49 4.85 -
ASB Bank 5.80 4.85 5.14 5.49
ASB Bank Special - 4.45 4.74 5.09
BankDirect 5.80 4.85 5.14 5.49
BankDirect Special - 4.45 4.74 5.09
BNZ - Mortgage One 6.50 - - -
BNZ - Rapid Repay 5.95 - - -
BNZ - Special - 4.59 4.79 5.09
BNZ - Std, FlyBuys 5.90 4.99 5.19 5.49
BNZ - TotalMoney 5.90 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 5.10 5.25 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct - - - -
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heartland Bank - Online - - - -
Heretaunga Building Society 5.75 5.00 5.20 -
Housing NZ Corp 5.79 ▼4.85 5.14 5.49
HSBC Premier 5.79 4.09 4.29 4.89
Lender Flt 1yr 2yr 3yr
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 5.70 4.59 4.69 5.09
Kiwibank 5.70 5.09 5.19 5.65
Kiwibank - Capped - - - -
Kiwibank - Offset 5.70 - - -
Kiwibank Special - 4.69 4.79 5.25
Liberty 5.69 - - -
Napier Building Society - - - -
Nelson Building Society 6.10 5.10 5.45 -
Resimac 5.00 4.86 4.75 5.30
Lender Flt 1yr 2yr 3yr
SBS Bank 5.79 4.99 ▲5.29 ▲5.59
SBS Bank Special - 4.59 ▲4.85 5.25
Sovereign 5.90 4.85 5.14 5.49
Sovereign Special - 4.45 4.74 5.09
The Co-operative Bank - Owner Occ 5.75 4.59 4.85 5.25
The Co-operative Bank - Standard 5.75 5.09 5.35 5.75
TSB Bank 5.65 4.80 5.15 5.45
TSB Special - 4.55 4.75 5.15
Wairarapa Building Society 5.70 4.85 4.99 -
Westpac 5.84 4.99 5.29 5.59
Westpac - Capped rates - 5.15 5.25 -
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.84 - - -
Westpac Special - 4.59 4.85 5.09
Median 5.80 4.85 5.14 5.38

Last updated: 29 May 2017 10:18am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com