A partner with the financial advisory firm KPMG says people transferring their British superannuation into KiwiSaver could be hit with a penalty tax of up to 70 percent.
Legislation introduced in Britain in April has put the minimum age for access to pension funds at 55, and those schemes must be approved.
But KiwiSaver allows early withdrawals to help with such things as buying a first home, and it no longer meets the British requirements.
KPMG partner Rebecca Armour said any Briton who transferred their funds into an unapproved scheme can incur a penalty of up to 70 percent of their British pension.
She said people can also be penalised up to 55 percent for early withdrawals.
