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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
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I need some help. I was born in England and I emigrated

Customer Question

Hello. I need some help. I was born in England and I emigrated to New Zealand in 2008 and became a resident. I returned to the UK in 2014 after things went pear shaped and I am now back living and working here. I transferred my pensions to New Zealand via a reputable pensions company. My pensions are still in New Zealand and I am now 55 years of age and can draw a lump sum (£8000) approx. I would like to know if I could have the lump sum paid into my bank account here in the UK and if so what are the Tax implications. I have asked for it to be paid into my New Zealand bank account but they are not certain if they can as I am not residing there anymore. If you require more information please ask. Thank you
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and happy to be able to help you with your question. My daughter lives in NZ.
The lump sum you liberate will be 25% tax free and the balance charged at your marginal rate of UK taxation. Under the Double Taxation Treaty between the UK and NZ taxation can only be applied in one jurisdiction so if there is any NZ tax deducted from the 8K then under the Treaty it is allowed as a tax credit against any UK tax liability on the same amount. The Treaty does not, however, protect you from differences in rates of taxation.
You can, of course, transfer all you pension funds to the UK. This might be a more convenient way of managing your pension pot.
I do hope that you have found my reply of assistance.
bigduckontax and other Tax Specialists are ready to help you
Customer: replied 1 year ago.
Thank you. Your answer was a great help. With your expert knowledge I can now proceed to have my pension transferred back to the UK which seems to be the best option. Many thanks for the advice.
Expert:  bigduckontax replied 1 year ago.
Delighted to have been of assistance.
Thank you for your support.