UK Pension Transfers & NZ Financial Services for Brits

If you are receiving UK pension income in New Zealand (whether from a personal or state pension), there are a couple of points to note.

• You need to declare this income on your tax return in New Zealand. You will be taxed on your income from personal pensions, unless you are a transitional resident. Income from your UK state pension will reduce the amount of New Zealand Superannuation you may be eligible for. Due to the reciprocal tax agreement between the UK and NZ, you will not be taxed twice on any income.

• Currency exchange charges and exchange rate fluctuations can affect your income. Our foreign exchange partner HiFX has a good service for setting up regular pension payments from the UK to New Zealand. You’ll save money on the charges that a UK high-street bank would make every month for setting up these payments. You’ll also get a competitive exchange rate on the funds you transfer, and you can even get an exchange rate locked in for up to two years, providing you with stability of income.

• It might not be too late to transfer your personal pensions – most pensions can still be transferred once they are in drawdown, but not once an annuity has been purchased.