Alun Rees-Williams

Or at 28% because I'm putting it straight into a fund.

I'll explain the difference in a minute.

But let's say I – because the tax rules here have just changed.

So just to add complication, right?

So effectively, if I transferred $100,000, I would be paying tax in one manner or another on $4,760.

Yeah.

At my –

There's going to be more tax to pay.

But conversely to that, it's also sat in the UK tax-free all that time.

Correct.

There's a lot to weigh up.

And we always recommend when people are doing these things, because we're not tax advisors, we're not about to give you tax advice, go and get some tax advice.

But New Zealand law has changed very recently, which has made it a little bit more advantageous also to bring money out.

So previously, that money, that 4.76%, and then going up by that every year was added onto your income.

So again, if we bought $100,000 out, $4,760 in year five would be added onto your taxable income in that year, and you would pay anything from 39% down to effectively 17.5, depending on what you earned.

The tax law has now changed, so instead of being income tax, it's now scheme tax, same as PI tax in your KiwiSaver.

So it is a straight tax, though, on UK pensions of 28%.

So the highest rate you'll ever pay is 28%, which the scheme can pay directly for you.

If there's a tax saving to be made because you earn, you know, less than whatever the figure is off the top of my head, I think $46,000, then...

You can elect to pay that out of your own income as well instead of having it as a scheme tax.