What is the 4 Year Rule
A key reason British Immigrants transfer their UK Pension as a lump sum to New Zealand is to reduce the expected amount of tax they are liable to pay. In New Zealand, versus the UK, money withdrawn from a QROPS superannuation scheme (from the age of 55) is tax free.
If you transfer your UK Pension within four years of becoming a New Zealand resident you will not pay tax on the amount transferred. If you transfer later there is a sliding tax liability, Refer toTax our Tax Liabilities Table