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Taxation of UK Pensions – Ignorance is bliss?

Last weekend’s NZ Herald has an article on the IRD’s approach to the taxation of UK pension schemes.

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10764091

The way NZ taxes foreign pension schemes is complex and (as a consequence) poorly understood.  The IRD have had an overhaul of the regime on their (very long) to do list for quite some time.   The IRD have apparently indicated that audit and enforcement action against NZ tax residents with UK pensions will be suspended pending the outcome of a more general policy review of this area.

Notwithstanding  the reprieve, NZ tax residents with UK pensions could do themselves a favour by getting a bit of tax advice.   They may be pleasantly surprised to discover that transferring their pension into a QROP not only solves their tax problem but might also allow them to get their hands on the retirement savings sooner than they had originally anticipated.

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