UK Pension Rules
Transferring Your UK Pension to New Zealand
Moving a UK Pension to a New Zealand QROPS (Qualifying Recognised Overseas Pension Scheme) can usually be done easily and without any UK tax penalty — but the rules matter, so here's what you need to know in plain terms.
A transfer from a UK registered pension scheme to a Qualifying Recognised Overseas Pension Scheme (QROPS) in New Zealand doesn't normally trigger any UK tax, providing you and your QROPS are both New Zealand tax resident at the time of transfer. Keep an eye on the five-year window as well, because if you move away from New Zealand permanently within five years after transferring a UK tax charge may apply then. Staying in NZ for five years usually keeps you in the clear.
Good news on the New Zealand side too. Since 1 April 2026, you can now elect to have any applicable NZ tax paid straight out of your transferred pension at a flat 28% rate under the 'Scheme Pays' option, instead of paying tax directly yourself. That solves a problem that used to trip people up — needing to file a tax return yourself and find personal funds to cover any NZ tax due from a transfer, especially if you are not aged 55 or over and not able to withdraw money from your QROPS. Your personal marginal tax rate might be higher than 28% as well, so the 'Scheme Pays' option can save time and money.
We have only covered the basics here, everyone's situation is different and the taxation issues can be complex. It is important that you consider your pension options carefully. We always advise clients to seek their own independent taxation or legal professional for advice.
The UK Government also has information on transferring pensions - see their UK website here
Defined Benefit (DB) pensions are more complicated and involve different risks, and so the UK Government have a more stringent set of rules compared to Defined Contribution (DC) scheme transfers. Information from the UK Financial Conduct Authority (FCA) can be found here.
You can contact us at no obligation for more information and a confidential discussion on your pension options.
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