QROPS battle added complexity
KiwiSaver providers have lost their QROPS status because they allow members to withdraw savings before the age of 55, in circumstances such as financial hardship.
That means that any money transferred into them from UK pension schemes could now be treated as an unauthorised payment and subject to tax penalties of up to 70%, 55% of which is borne by the saver.
This applies whether they are a migrant or a Kiwi who worked and saved in the UK.
The IRD is awaiting word on whether its negotiations with Her Majesty's Revenue and Customs (HMRC) have been successful.
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