British Expats: Do you need to submit a Tax Return to NZ IRD?
The 7th July deadline to file your IR3 Individual Income Tax Return for the 2025 tax year (1 April 2024 – 31 March 2025) is approaching. If you use a tax agent, the deadline is 31 March 2026.
Wondering if you need to file or how to report tax owing on a UK pension transfer or other overseas income? Here’s what you need to know.
Do You Need to File an IR3?
You don’t need to file if:
Your income is only New Zealand wages taxed through PAYE (e.g., salary).
You transferred a UK pension to New Zealand within the 4-year transitional tax exemption (for new residents who haven’t lived in NZ for the past 10 years), as it’s tax-free.
You do need to file if:
You transferred a UK pension to New Zealand in the 2025 tax year, after the 4-year exemption ends. This counts as overseas income and is taxable.
You received other overseas income (e.g., UK rental income or business earnings) after the exemption period.
When to File and Pay
Filing Deadline: Submit your IR3 by 7th July 2025 (or 31 March 2026 with a tax agent) using the IRD’s myIR portal. Late filing may lead to penalties or interest.
Tax Payment: The IRD calculates your tax, due by 7th February 2026 (or 7th April 2026 with a tax agent). Paying on time avoids penalties.
Pension Transfers: A UK pension transferred in the 2025 tax year must be reported in your 2025 IR3 (if taxable), not earlier.
How to File
Report Overseas Income: Declare a UK pension transfer or other overseas income (e.g., rentals, business earnings) in Question 18 (Overseas Income) on the IR3 form.
Pension Transfers: Calculate the assessable income (taxable portion) of the pension transfer with help from your financial adviser to ensure accuracy.
IR1261 Form: Include basic calculations with the IR1261 Overseas Income Summary to show how you determined assessable income.
Tax Calculation: Report assessable income via myIR, and the IRD will determine the tax based on your marginal tax rate.
Need Pension or Financial Advice? For tax questions, consult your financial adviser or a tax expert. Considering a UK pension transfer, keeping your pension in the UK, or optimising investments that are already in New Zealand?
Contact us to book a call and explore your options.