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Thread: NZ Tax on UK Pension

  1. #1
    Join Date
    Jan 2018
    Location
    New Zealand
    Posts
    1

    Cool NZ Tax on UK Pension

    Hello All!

    I have just started to receive my UK Armed Forces Pension payments into my NZ bank account.

    I'm trying to find the tax implications...I've rang IRD a couple of times but they haven't been very helpful.

    At the moment I am working full time in NZ and pay tax on that salary via my employer.

    Does anyone have any knowledge of the tax implications ie; is the tax rate the same as my salary tax rate?


    Many Thanx

    Steve

  2. #2
    Join Date
    Feb 2008
    Posts
    37,822

    Default

    This page from the IRD http://www.ird.govt.nz/international...ns-k-z.html#uk may be of some help - or a place to start, anyway - until someone with some knowledge comes along.

  3. #3
    Join Date
    Mar 2016
    Location
    New Zealand
    Posts
    8

    Default

    Quote Originally Posted by SteveH3897 View Post
    Hello All!

    I have just started to receive my UK Armed Forces Pension payments into my NZ bank account.

    I'm trying to find the tax implications...I've rang IRD a couple of times but they haven't been very helpful.

    At the moment I am working full time in NZ and pay tax on that salary via my employer.

    Does anyone have any knowledge of the tax implications ie; is the tax rate the same as my salary tax rate?


    Many Thanx

    Steve
    Hi Steve

    Firstly, UK Pensions, other than in respect of Government Service (generally those paid by Paymaster General), fall under the NZ/UK Double Taxation Agreement (DTA) whereby they are taxable solely in NZ. Usually Military Pensions fall under this rule and are therefore taxable solely in NZ and if this is the case for your pension you should not pay any tax in the UK on this pension; you payslip/P60 should show code NT.

    How long have you been living in NZ? If this is less than 4 years you may be entitled to Transitional Residents Relief and your UK Pension will not be taxable in NZ until the relief period expires. See http://www.ird.govt.nz/yoursituation...reign-inc.html

    If you are not entitled to the temporary transitional residents relief your UK pension will be taxable in full in NZ and you'll need to be include the gross income in your yearly NZ income tax return and pay tax to Inland Revenue accordingly. As you are currently an employee this will mean the Pension is taxed at your top tax rate (or more depending upon how much you earn and the amount of your UK pension; maximum currently at 33%)

    Regards
    JohnAR

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