Emergrating and forces pension

teebrown

I have put this question on the forces forum, but they have adviced me to place it here as well.............

Ok, my husband is a serving soldier who will be completing his 22 yrs after christmas, we will then be emergrating to NZ, he will be on the pension 75, my question is this:

the lump sum would be put into a high interest UK account and sat on, but what is the best way to have the monthly pension payed, over in NZ or in UK and what are the tax rulings on this - I do know both UK and NZ have a one tax law, but not sure how much that would be or when they start taxing it.

We were going to use our Nationwide account to draw money out in NZ.

Any advice?

EdInvestor

Govt pensions are not normally paid gross overseas - they must be paid and taxed in the UK.But there are some exceptions, and NZ is one of them.

http://www.hmrc.gov.uk/cnr/uk_gov_pensions.htm

Ask HMRC if you want to be paid gross.But you need to check which type of payment will be better, taking into account UK and NZ tax allowances and rates.

teebrown

Thanks very much.