UK pensions · NZ tax residents

UK Pension Withdrawal & NZ Tax Calculator

See how HMRC tax-free cash and Inland Revenue's foreign superannuation rules could apply when you draw on a UK pension while living in New Zealand. The figures shown when the page opens are examples. Replace them with your own.

Pension & currency
£
Enter the current exchange rate. Inland Revenue converts each lump sum at the rate on the day you receive it, or an acceptable average rate.
%
NZ residence
Use the first day of the 183 days, or the date you got a permanent place of abode, whichever is earlier.
$
Salary, NZ Super, interest and so on. The lump sum is taxed on top of this income at marginal rates.
Withdrawal plan
How you take the money
HMRC tax-free cash
%
£
The standard rate is 25%. Change it if your scheme has protected tax-free cash above 25%. The Lump Sum Allowance caps lifetime tax-free cash at £268,275 unless you hold a protection. This tax-free amount is a UK concession only. It does not reduce NZ tax.
Tax treatment
%
£
These are deducted from the lump sum before the schedule percentage is applied, starting with the first taxable withdrawal.

Year by year

IRD schedule percentages

This is the share of each lump sum that counts as NZ taxable income, by the number of income years since your exemption ended. The years your plan uses are highlighted.

How this is worked out

  • The four-year exemption ends on the last day of the 48th month, counted from the start of the month after you became resident. Lump sums received before then are not taxed in NZ.
  • Year A is the NZ income year (1 April to 31 March) in which the exemption ends. Year B is the income year of the withdrawal. The schedule year is B − A, with a minimum of 1.
  • Taxable NZ income = (lump sum − contributions made while resident) × schedule %. It is taxed at the individual rates from 1 April 2025: 10.5% / 17.5% / 30% / 33% / 39%.
  • NZ taxes the whole lump sum under this method, including the part HMRC treats as tax-free.
  • Regular pension income is taxed in full each year and is not modelled here.

Every situation is different. Talk to us about the best timing and structure for your UK pension.

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This calculator provides general information only and is not personalised financial or tax advice. Results are estimates based on the information you enter and on Inland Revenue guidance (IR1024, April 2026) and individual tax rates from 1 April 2025. It does not model the formula method, defined-benefit schemes, regular pension income, exchange-rate movements, or effects on Working for Families, student loans, provisional tax or ACC. The UK treatment depends on your scheme rules and the UK–NZ double tax agreement. Before acting, seek advice that considers your circumstances. See our Disclosure Statement. Sources: IRD foreign superannuation, IRD tax rates.