QROPS New Zealand. QROPS Update
Following HMRC’s announcement on April 6th, 2012, many QROPS New Zealand schemes were closed. At least one prevailed with the new re-write. Brooklands (NZ) Superannuation Scheme no.1 is open to both NZ residents and non-residents. This means that you can transfer your pension to New Zealand whether you are a resident or not. For example, you can reside in Thailand and still have your pension scheme held in New Zealand for tax reasons.
QROPS New Zealand
Since HMRC’s announcement last month, QROPS schemes must satisfy condition “4″, which means that residents and non-residents get taxed the same. Many schemes fell foul of HMRC’s rules and many schemes in Guernsey and the Isle of Man were taken off HMRC’s QROPS list. Brooklands pension scheme has remained on the NZ QROPS list after some revisions to their scheme.
QROPS New Zealand in Focus
So, what are the provisions under the Brooklands Superannuation Scheme?
New Zealand is an island country located in the south western Pacific Ocean. The Brooklands New Zealand QROPS is regulated by the Financial Markets Authority (FMA). The FMA was established under the Financial Markets Authority Act 2011.
What are the benefits of the NZ QROPS?
- The minimum retirement age is 55; there is no maximum retirement age
- No income tax in New Zealand; No UK income tax
- No 55% tax upon death whilst in drawdown (as under UK rules)
- Maximum Pension Commencement Lump Sum (PCLS): 30% of original transfer value plus 100% of any growth of the pension pot
- You need to be offshore for 5 years to qualify for the protection from UK taxes
- FSA regulated discretionary fund manager appointed
- NZ QROPS is zero rated PIE
Whilst the investment options are much more limited than under a Malta QROPS for example, it could be a good suit for you, particularly if you live in a country which does not have a Double Taxation Agreement (DTA) with a New Zealand QROPS. There are five strategies you can choose one based on your level of risk from conservative to adventurous. Younger clients may wish to be more adventurous whereas older clients tend to choose a more conservative route with a stronger emphasis on bonds and UK gilts (UK government bonds) or into capital protected structured bank notes or even holding the monies in a high interest account, although with interest rates at an all time low, this may not be the best strategy for the moment.
Alternate QROPS New Zealand Providers
Apart from Brooklands, other schemes include the KiwiSaver scheme, Fidelity Kiwi, Fidelity Super and NZ Endeavour. The Evergreen QROPS New Zealand has been suspended temporarily. There are currently 43 QROPS New Zealand schemes on the list (Correct as of 29/3/2013). But, we prefer the Brooklands scheme which offers a lot of pension protection and also has the lowest QROPS New Zealand fees on the market right now.
QROPS New Zealand 100% Lump Sum Not Available Anymore
Due to the fact that 100% of any increase in the pension pot can be taken
Double Taxation Agreements (DTA’s) with New Zealand and How it Affects a QROPS New Zealand
NZ Double Taxation Treaties
Who has a Double Taxation Agreement (DTA) with New Zealand?
Australia India Singapore
Austria Indonesia South Africa
Belgium Ireland Spain
Canada Italy Sweden
Chile Japan Switzerland
China Korea Taiwan
Czech Republic Malaysia Thailand
Denmark Mexico Turkey
Fiji Netherlands United Arab Emirates
Finland Norway United Kingdom
France Philippines United States of America
Germany Poland
Hong Kong Russian Federation
You can find the updated list from New Zealand’s Inland Revue Department.
Click here for more info and for a pension transfer analysis, please send enquiries to info@qropsspecialists.com
