Transfer UK Pension to NZ in 2026: What Changed on 1 April and What to Check First

You can often move a UK pension to New Zealand, but only into a NZ scheme that HMRC recognises as a QROPS (qualifying recognised overseas pension scheme). For new transfers that usually isn't KiwiSaver, and the UK State Pension isn't a pension you can move into a QROPS. Since 1 April 2026 there's also a new way to pay the NZ tax on the transfer.

Whether you should is the harder question. The NZ tax depends on when you became a NZ tax resident, the UK can add its own charges, and a transfer is hard to undo. Invicta isn't a tax or UK pensions specialist, so treat this as a guide to the questions worth asking, not a recommendation to transfer. You'd want regulated UK advice and a tax adviser involved before moving anything.

Can you transfer a UK pension to NZ?

Often, yes, with conditions. GOV.UK says the overseas scheme must be a QROPS, and checking that is on you, with help from the scheme, your UK provider or an adviser. If it isn't one, your UK scheme may refuse, or you could face at least 40% UK tax on the transfer.

Some pensions can't move at all. The UK State Pension isn't a pension you can move into a QROPS, and MAS notes that unfunded public schemes like the NHS pension are generally not permitted. MoneyHub adds that you generally can't transfer if you're already drawing a defined benefit pension or most annuities. Your UK provider can tell you quickly what's possible.

Can you transfer a UK pension into KiwiSaver?

For new transfers, generally no. IRD's regulatory impact statement notes KiwiSaver schemes ceased to be QROPS in 2015, and MoneyHub says KiwiSaver schemes can't register as one. A UK pension usually has to land in a separate NZ retirement scheme on HMRC's list.

There's one exception. If you moved UK pension money into KiwiSaver before 17 June 2015, that "locked-in" money and its returns can be moved to a NZ QROPS, and have been able to since 1 April 2025. You and the QROPS both have to agree in writing. The whole locked-in amount moves in one go, and you start with your KiwiSaver provider, not IRD. That is a QROPS-style transfer. If you instead pay a foreign super lump sum into KiwiSaver, you may have to pay income tax on it (see IRD's IR1024 guide).

Got a KiwiSaver account and a UK pension and aren't sure how they fit together? We can go through the KiwiSaver side with you in a free 15-minute consultation (https://www.invictafinancial.co.nz/). We can't advise on the UK transfer itself.

What changed for UK pension transfers on 1 April 2026?

The big one is "scheme pays". For funds transferred on or after 1 April 2026, you can ask your NZ scheme to pay the NZ tax straight to IRD out of the money you've transferred, at a flat 28%. It's called transfer scheme withholding tax.

It matters because of an old snag. UK rules can stop you taking money out of a QROPS early, so IRD notes you might not be able to pay the NZ tax from those funds without being penalised. Scheme pays gets around that.

Some details from IRD:

• The 28% applies to the taxable part of the transfer, which IRD calls the assessable withdrawal amount. You work it out and give it to your scheme within 10 working days of the transfer.
• If the tax is paid correctly this way, it's final. You leave the income out of your tax return, and IRD says it won't count towards Working for Families, FamilyBoost, student loan or child support.
• It's your choice. IRD says the flat 28% "may be lower than your individual tax rate", and "may" is doing real work there

AMP and MAS both say that if you miss the 10-day window, you go back to paying the tax yourself. Ask any scheme you're considering whether it offers scheme pays and how it handles that deadline.

How is a UK pension transfer taxed in NZ?

Start with the 4-year exemption. IRD says you don't pay NZ tax on foreign super lump-sum transfers or withdrawals made inside it. It starts at the earlier of two dates. One is the first day you were here for more than 183 days in a 12-month period (counted back to day one). The other is the day you set up a permanent place of abode here. It's four years, not four tax years.

This is where people get caught out. NZ tax residency can start earlier than the day you landed, and Johnston Law sees clients who've misjudged their start date in both directions. Get it wrong and you might pay tax you didn't need to, or assume you're exempt when you're not.

After the exemption, IRD's schedule method is the default for most people who acquired their scheme interest as a non-resident. You pay tax on a percentage of the transfer that grows with each income year since the exemption ended: 4.76% in schedule year 1, 23.07% in year 5, 44.39% in year 10, and 100% from year 26. There's also a formula method based on actual gains. IRD calls it complex and recommends a tax professional.

Here's an illustration only, with simple assumptions. Say NZ$100,000 lands in your NZ scheme and you're in schedule year 5. The taxable amount is 23.07% of $100,000, or $23,070. At the 28% scheme pays rate, that's about $6,460 in tax. Assuming a 39% tax rate (the top marginal rate), taxing the whole $23,070 at your own rate would cost about $8,997 instead. In real life your other income, your exemption position and the exchange rate all change the numbers, and scheme pays won't always win.

What does the UK charge on a QROPS transfer?

The UK has its own 25% overseas transfer charge. GOV.UK says you don't pay it if you live in the country your QROPS is based in and the transfer is within your overseas transfer allowance, usually £1,073,100 (higher with a protected allowance). There are other exceptions, such as some employer-provided QROPS, so check with the scheme. Going over the overseas transfer allowance triggers the 25% on the excess.

The catch is the 5-year rule. If you move away from NZ within five years of the transfer, the 25% can apply after the fact. HMRC's window runs to the next 5 April plus five further tax years, so it can last almost six years. If there's any chance you'll head to Australia or back to the UK, raise it before you transfer.

One more UK point. The normal minimum pension age is 55 now and rises to 57 on 6 April 2028, with some protections. Taking money out before you're allowed can trigger UK tax charges.

Should you transfer at all?

Some people have good reasons. MAS points to simpler finances and less exchange rate risk when your retirement spending will be in NZ dollars. Others are better off leaving it where it is.

AMP lists what you might give up: spouse or dependant pensions, inflation-linked increases and insurance cover inside some UK schemes. You normally can't go back to the same UK scheme on the same terms. A defined benefit pension arrives as a lump sum, and AMP cautions it may not produce the same income over your lifetime as staying put.

The UK also puts a safety check in the way. For safeguarded benefits worth more than £30,000, which includes defined benefit pensions and some older plans with guarantees, you must take advice from an FCA-authorised adviser before transferring. MoneyHub says the report typically costs several thousand pounds up front.

Leaving the pension in the UK isn't tax-free either. IRD says most double tax agreements give NZ the right to tax pension payments, so most people pay NZ tax on them. MoneyHub suggests revisiting the decision each year, since your circumstances change.

What about the UK State Pension?

The UK State Pension isn't a pension you can move into a QROPS, but you may be able to claim it from NZ if you qualify. GOV.UK's rates of State Pension page says you cannot get yearly increases in New Zealand, and the pension goes up to the current rate if you return to live in the UK.

It also affects NZ Super. Work and Income reduces your NZ payment by $1 for every $1 of overseas pension, converted to NZ dollars and deducted before tax (gross), and leaves out any part from voluntary contributions. Check with Work and Income before you rely on a combined figure.

What should you sort out before you transfer anything?

These are the questions worth working through, ideally with a UK-regulated pension adviser and a tax adviser:

1. Confirm your NZ tax residency start date and exemption period with a tax adviser. Everything else hangs off it
2. Ask your UK provider for a transfer value and find out what type of pension it is. A defined benefit or any guarantee changes the process
3. If the advice rule applies, you must take regulated UK advice. Even when it doesn't, it's worth considering, and many people choose to get it
4. Check the NZ scheme is on HMRC's list and offers scheme pays
5. It's worth considering where you'll live over the next five years, as many people choose to settle that before transferring.
6. Think about the exchange rate. MoneyHub notes some schemes let you hold sterling for a while.

Be wary of anyone pushing you to hurry. GOV.UK has scam help for pension transfers, and a transfer to something that isn't a QROPS can be costly.

Where we can help is the NZ side of settling in: KiwiSaver, personal insurance, mortgage advice and wealth planning. We can review what you already have and compare the market. Not sure where your UK pension fits in the bigger picture? Book a free 15-minute consultation (https://www.invictafinancial.co.nz/) and we'll cover the NZ side, then suggest speaking to a UK-regulated pension adviser and a tax adviser for the transfer itself.

General Information Disclaimer

The information in this article is general in nature and is not intended to be personalised financial advice. It does not take into account your individual goals, financial situation, needs, or circumstances.

Any examples, figures, rates, or scenarios are for illustrative purposes only and may change over time.

Before making any financial decision, you should consider whether the information is appropriate for your circumstances and, where appropriate, seek personalised advice from a licensed financial adviser.