Tax on Pensions

Discussion in 'Finance, Property, Law' started by Allen_W, May 11, 2006.

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  1. Hi All,

    I retired in 1987 and draw my full pension. I am about to take early retirement from my current job and, providing there is no problem with retained benefits, get a second pension, sell up and sod off to New Zealand for a couple of years. A couple of questions to those a lot brighter than me:
    1. Is there a way of not giving Gordon Brown any money whilst I'm in NZ?
    2. Is a militery pension treated differently from other pensions as far as retained benefits are concerned?

    Enjoyed my 22 years and think the pension is good considering the amount of time it's paid out (hopefully!). I joined at the tender age of 15 and so found civvi street quite strange and considerably more agressive than the military. Most of you people are extremely well qualified and very competent individuals. When you leave aim high and believe in yourselves. There is more money out here but you have to work for it!

    Allen
     
  2. In answer to question 1, Yes (probably)

    1. The IR has MOU with most countries whereby, you are only taxed in one or other country. You need check the HMRC website, it is all in legalese. Well worth investing a specialist tax advisor, familiar with the NZ-UK MOU. (I understand from my brother - tax advisor that the NZ/Aus IR are very robust) Therefore specialist advice is vital.

    2. Be aware, by declaring yourself a resident 'pensioner' in another country Broon has found a way of not index linking your state pension payments since only the UK suffers from Inflation (IIRC).

    3. One final thought, unless you intend you cut yourself off completely from Blighty it is well worth investigating depositing some of your assets in GBP in an offshore account like Jersey. This way you hedge some of the risk with regards currency fluctuations between the GBP and NZD. (but this needs to be checked with point 1) if you ever wish to move back to the UK.

    Good luck, get good tax advice early, well worth it, if you do not intend to pop your clogs next week!
     
  3. Thanks Jailorinummqasr,

    It looks like a trip to the money man as you suggest even if it means parting with ten shilling notes.

    Allen