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Overseas Pension Transfers

Overseas Pension Transfers

UK Pension Transfers

Refer to IR1024 fact sheet for full details

If you’ve withdrawn or transferred a lump sum from a foreign superannuation scheme, you may need to pay income tax on the amount. How it works depends on when the lump sum was withdrawn, and how you’ve accounted for your scheme in the past.

In most cases, you’ll need to pay income tax on the lump sum, unless you qualify for an exemption.

Exemptions

Four-year exemption - A four-year lump sum exemption period generally applies to lump sums received on or after 1 April 2014, if you have not previously had an exemption period. The exemption period starts from the date you become a New Zealand resident. It runs until the end of 48 months from the beginning of the month after the one in which you become a New Zealand resident. If you receive a lump sum within the first four years of becoming a New Zealand tax resident, you won’t have to pay tax on the amount you receive (as at the 26/01/2015).

Australian Pension Transfers

Australia to New Zealand transfers The Australian transfer exemption is effective from 1 April 2010. This means that when you transfer/withdraw a lump sum from an Australian scheme into New Zealand, this is not taxable.  But if you transfer/withdraw a lump sum from a foreign superannuation scheme into an Australian scheme, this is taxable.

Total Wealth can assist you with the transfer of your overseas Pension schemes, just ask us how.