QROPS New Zealand Pension News Update
QROPS New Zealand pension news Update since HMRC’s clampdown on QROPS in April 2012.
Brooklands Pensions have now launched a a further QROPS New Zealand, despite legislation currently going through its Parliament which could prevent QROPS from being domiciled in the country. In the latest QROPS New Zealand Pension News Update, Brooklands have also dropped their prices on their NZ QROPS making it around the same price as their SIPP schemes, making them possibly the cheapest QROPS on the market.
stop pressClick here for the latest QROPS NZ rules for 2015.
The company said it expects the product, the Brooklands (NZ) Superannuation Scheme No. 1, to become one of the first superannuation schemes to be registered as a foreign investment zero-rate portfolio investment entity (PIE) – a new form of PIE introduced in this year’s Budget. It means that non-New Zealand resident investors will not pay PIE tax on the foreign sourced income from the scheme – tax had previously been payable at 28%. This is a massive benefit for NZ QROPS schemes which maximizes tax effiency for your UK pension pot.
QROPS New Zealand Pension News Update. Will QROPS New Zealand still be available for British expats who are non-resident in New Zealand?
Despite the introduction of a more favourable tax environment for foreign investors, the New Zealand government also recently published draft legislation which threatens the very existence of QROPS in the country. In August, it published the Financial Markets Conduct Bill, in which it states that anyone joining a New Zealand-based pension scheme must be either a resident of the country or employed by its government – thus excluding British expats who wish to use New Zealand solely as the domicile of their pension.
While it will be a long time before the Bill passes into law, giving plenty of opportunity for amendments to be made, there is real concern that the negative attention some QROPS schemes have received in the country may ultimately be enough for the government to decide to keep the Bill as it is and expel the QROPS industry. However, this may be at least a year down the line and in the mean time, UK expats have access to the new QROPS New Zealand pension transfer which allows UK expats more flexibility to access their pension funds. The Brooklands QROPS pension transfer will not allow a 100% lump sum, but will allow staggered access to your pension depending on your financial circumstances.
QROPS New Zealand Pension News Update. Can I get 100% lump sum and cash in my pension?
In a statement accompanying the launch of the product, Brooklands said New Zealand is a “legal and desirable QROPS jurisdiction”. The company also said that, due to its Double Taxation Agreement with the UK, it is not limited by restrictions requiring a percentage of the initial transfer to be held to provide an income for life. In other words, you will be allowed more than the usual 30% lump sum under a traditional Guernesy or IOM QROPS. However, 100% cash-ins are against the spirit of QROPS and won’t be allowed. Rather a staggered lump sum withdrawal will be allowed.
Brooklands added: “This means that New Zealand has the ability for much more flexible provision of retirement benefits in comparison with the likes of Isle of Man and Guernsey which both have this restriction.
“New Zealand is a very well regulated jurisdiction with disclosure and investor equity as key attributes. Given our credentials in the UK, where these are also key values, this additional jurisdiction fits perfectly into our range of products.”QROPS New Zealand Pension News Update by Richard Malpass