FAQs

As a starting point, you could contact your former employers or visit gov.uk/find-pension-contact-details. Alternatively, we can track down the information for you. And don’t worry, by asking us to help collate these details, you’re under no obligation to proceed with GBPensions for any kind of transfer.

The growth in a UK pension scheme is allowed to roll up virtually free of tax for UK residents. However, a NZ tax liability accumulates annually on the growth of a UK pension scheme, if the member is a NZ resident, even if they are not old enough to access the funds! The tax liability is accumulated annually until scheme proceeds are paid out, either by transfer or withdrawal of benefits from age 55. Therefore the longer the member and their UK pension scheme remain in different countries, the bigger the potential NZ tax liability will be.

• Potential mitigation of NZ tax liability on receipt of overseas funds, be that by transfer or withdrawal of benefits.
• Retirement benefits payable from NZ schemes are treated as exempt income with no tax payable in NZ.
• Death benefits payable from NZ schemes are made 100% free of NZ income tax – payments from a UK scheme are not after age 75.
• Potentially larger lump sums can be paid without deduction of tax from NZ schemes compared to UK schemes.
• Some NZ schemes can hold funds in various currencies, thereby allowing currency exchange rate risk to be mitigated, whereas most UK schemes have no such facilities.
• Transfers to a SIPP can potentially allow up to 100% of the UK funds to be withdrawn without a UK or NZ tax liability.

Whilst the motivation to transfer a pension scheme might appear to offer benefits, many factors need to be taken into account before an informed decision can be made. Some factors will be more important than others for anyone contemplating a transfer, and the list below outlines only some of those that need to be carefully considered:

• Is the transfer value sufficient to generate returns in the receiving scheme, of an equivalent value to those being given up in a defined benefit (DB) scheme
• Currency conversion rates
• Costs and fees incurred in the transfer process itself and those of the schemes involved
• Exit penalties
• Tax implications
• Loss of guaranteed benefits and therefore potential security
• Legislative changes
• Personal jurisdictional and domiciliary changes
• Accessibility of benefits or funds
• Investment risk and returns

If a transfer can be made within the first four full tax years of becoming tax resident in NZ, the member generally will have no NZ tax liability. If a transfer is made after the four year period a NZ tax liability will theoretically start to accumulate on an annual basis and become payable on a later transfer or withdrawal of benefits from age 55. The longer the transfer is delayed, the greater the potential NZ tax liability.
Read what QROPS means.

GBPensions doesn’t offer advice about currency exchange. But, if a pension transfer is deemed appropriate, we would say that delaying it based purely on poor conversion rates is unwise.

If the exchange rate is an issue, you could, if you wish, “park” the transferred funds in a sterling QROPS  until you feel the time is right to convert to your chosen currency. That conversion can happen far quicker than the time it takes for the actual transfer. Alternatively, transfers to a SIPP retain all monies in GBP (pound sterling) anyway.

In the vast majority if cases, the answer will be no. If you are a NZ tax resident, transferring your UK pension to a legitimate NZ QROPS is an authorised payment and so no unauthorised payment charges will apply. However, an individual’s circumstances need to be carefully considered, which is why GBPensions always recommends that clients seek specialist tax advice.

GBPensions only advises on NZ superannuation schemes that are registered under the Financial Markets Conduct Act 2013 and which have been recognised by Her Majesty’s Revenue and Customs (HMRC) as QROPS.

On average, UK pension transfers take six months to complete. Transfer Your Pension explains the transfer process in more detail.

Because no two individuals’ situations are the same there can be no definitive answer to this question. There are many things to consider, which may include what are you giving up with your current scheme, what your benefits are, and general tax issues. At GBPensions, we always consider whether a transfer to a QROPS or SIPP is better for our prospective clients as we are able to offer both options.

Over the years, ​GBPensions’ team has arranged pension transfers to New Zealand from more than 150 UK pension providers.

​Although the following list is by no means exhaustive*, it does give the names of the major companies with whom we have dealt. If you do not see your scheme’s name here, please do not worry. Many UK pension schemes have merged and now operate under a different name or are administered by a new company. Even if not, GBPensions will be pleased to develop a new relationship in order for you to move your pension to NZ.