QROPS jurisdictions - New Zealand

[IrishInThailand]

Did anyone see this recently, some changes coming in ..........

You are probably already aware of the recent changes to UK pension rules, allowing people far greater access to far greater amounts of their accumulated pension pots.

However, the situation with funds which have already been transferred out of the UK, is still developing and HMRC are gradually extending such flexibility to the various QROPS jurisdictions. One thing that has become very clear, is that it is unlikely that these increased flexibilities will be extended to clients with funds in New Zealand.

In fact, quite the opposite seems to be happening, as the NZ government have recently introduced legislation which will dramatically cut the amounts clients can withdraw from their pensions, which is set to come into force on the 1st December 2016 (see article below)

http://www.internationalinvestment.net/regions/new-rules-will-limit-cash-for-nz-qrops-transfers/

[Familyonthemove]

Interesting news.

My Advisor thought New Zealand was not the best place and recommended Gibraltar.

The "20-25%" after fees is also interesting - the fees for all QROPS must be high?

[IrishInThailand]

QROPS "did" offer a way for the "pressed" farang to get access to cash when 55 years old.....not so anymore.....

Average QROPS costs about 8,000gbp (Financial Advisers costs)

But as I said offers potentially access to cash that would maybe be locked in UK or elsewhere until you 65

Looks like that door closed now ?

[Oxx]

My Advisor thought New Zealand was not the best place and recommended Gibraltar.

Current thinking seems to be that Malta is the best option because it's inside the European Union and so gives the same withdrawal flexibility as UK pension have. With other jurisdictions withdrawals beyond the 30% lump sum potentially expose the pension fund to IHT.

Average QROPS costs about 8,000gbp (Financial Advisers costs)

But as I said offers potentially access to cash that would maybe be locked in UK or elsewhere until you 65

That cost seems ridiculously high. I paid my IFA GBP 2,500 for a fairly complicated transfer to QROPS involving 3 private pensions and two company schemes, albeit a few years ago. I really don't believe costs have gone up that much.

The UK now allows 100% withdrawals once you hit 55 (albeit potentially subject to a certain amount of tax). This flexibility is currently only available with Malta QROPS thanks to the UK's foot dragging Chancellor who refuses to fulfil his promises in this area.

[IrishInThailand]

Good info

My fees were high 7 per cent Adviser fees and 1,250 account set up fee...about 5000 gbp

(asiapacific pensions)

I suppose now I will need to transfer again or just take 10 per cent per year till its gone or the grave hits first

[al007]

QROPS

I am a retired Chartered Accountant 71 yrs in drawdown

I have one set up in Gibraltar, my set up fees were 500gbp, annual admin 800gpb, I self manage so no other fees

A lot of incorrect information is written above

I will willingly help anyone who is thinking or going this route, I am familiar with most the jurisdictions, and more knowledgeable than most providers, who are not all crooks but need to be watched

I am currently looking at unlocking more funds in Gibraltar

If you want assistance, ( I neither want nor earn any money from this ) then PM me and I will give you my phone number and may well be able to help you clarify what you want to know

I prefer not to say too much on open forum as there are too many ill informed opinions

[al007]

I have just reread this thread

I believe Malta is a bad location for QROPS if you live in thailand, it has no double taxation agreement with thailand so your pension could be quite highly taxed in Malta, I do not know the exact amount

Gibraltar taxes withdrawals at 2.5%, I take my full pension annually in advance

Legally in thailand there is no tax on pension income, so I only pay 2.5% total tax very acceptable to me

SO BE VERY WARY OF MALTA

[Oxx]

A lot of incorrect information is written above

Perhaps you could do us all a service and point out all the incorrect information above?

I believe Malta is a bad location for QROPS if you live in thailand, it has no double taxation agreement with thailand so your pension could be quite highly taxed in Malta, I do not know the exact amount

Gibraltar taxes withdrawals at 2.5%, I take my full pension annually in advance

In the absence of a DTA Malta taxes the 30% withdrawal at 0%. It taxes regular pension income at 0%. No capital gains and no death taxes. The only area were Malta isn't great is if you want to exercise pension flexibility and withdraw above the permissible pension. Then the excess withdrawal is taxed at 25%.