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A transfer to a New Zealand QROPS provides the opportunity for non UK residents who have lived outside the UK for five complete tax years or more to release capital from their UK pension funds providing they have not already bought an annuity.
It is possible to receive a sum of up to 100% of the fund value, irrespective of age. In many instances a transfer to a New Zealand QROPS allows clients to meet their short term needs for cash.
It is not surprising that a transfer to a New Zealand QROPS is an attractive option for expat clients wherever they live. Bear in mind that the average UK pension fund is under £30,000. A fund of this size will not go far to meet the traditional aim of providing an income for life – perhaps as little as £125 per month.
The New Zealand pension providers we recommend are recognised by HMRC and allow inward transfers from expats living outside New Zealand who live in say Spain or France.
This does not work for UK residents. An expat must have been outside the UK for five or more complete tax years. For the tax year 2011/12 the key date of non residency is 6 April 2006. There are no exceptions to this.
For a detailed technical explanation of the way QROPS work please contact us.
See: Qrops.es and qropsnz.com
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