Transfers UK Pensions to New ZealandBefore immigrating to New Zealand
Here are some suggestions if you haven't already immigrated.
- Set up a Family Trust before you immigrate
In the UK for the 2008/2009 tax year, the Inheritance Tax Rate is 0% on the first £312,000 (the "nil-rate band), and 40% on the rest of the value, at death, of an individual's tax estate. The nil rate band rises annually; tax is only payable on the value of an estate above the nil rate band. In the 2007 budget report the Chancellor announced that the nil rate band will be £350,000 in 2009/2010 and £350,000 in 2010/2011 tax year. This is to take into account the sharp rise in house prices in the United Kingdom over the previous few years.
In New Zealand individuals are taxed on Gifts over $27,000 per year, but there are no death duties. If you set up a Family Trust after you immigrate to New Zealand it is a slow process to transfer your assets across and forgive the debt.
Contact LYFORDS and we can put you in contact with an Independent New Zealand Trustee company experienced in setting up Family Trusts and what Estate Planning considerations you should take before you immigrate to New Zealand.
For a description of how Discretionary Family Trusts could benefit you, please refer to our main web site www.lyfords.co.nz.
- Schooling
Education Review Office - the Government department which reports publicly on the quality of education in all New Zealand schools and early childhood centres. - Estate Planning
In the UK an Enduring Power of Attorney (EPA) will cost around £80-700 and it will have to be registered through the courts. This is not the case in New Zealand and an EPA costs approximately $80.
You should consider who will be the Guardians of your children, Executors of your estate in New Zealand.
We can arranged for a reputable Trustee company to set up your, EPA, Wills and Family Trust before you leave the UK which would comply with UK and New Zealand laws. - Permanent Residency
You cannot transfer your UK Pension until you have permanent residence and do not intend returning to the UK. You will need to show evidence that you are employed in New Zealand.
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