Bringing money to NZ
Hi people, quick question. I have some money still in the UK, not earned money, a gift. Do I still have to get it here within the 4 years to not pay tax on it, OR because it's a gift can I leave it there until exchange rate improves? Running out of time :ohmy:
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Re: Bringing money to NZ
Originally Posted by j19fmm
(Post 12269286)
Hi people, quick question. I have some money still in the UK, not earned money, a gift. Do I still have to get it here within the 4 years to not pay tax on it, OR because it's a gift can I leave it there until exchange rate improves? Running out of time :ohmy:
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Re: Bringing money to NZ
That's very interesting. Does it only apply to money which has been gifted or to any lump sum of capital? Proceeds from house sale for example?
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Re: Bringing money to NZ
Originally Posted by Skoskie
(Post 12269771)
That's very interesting. Does it only apply to money which has been gifted or to any lump sum of capital? Proceeds from house sale for example?
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Re: Bringing money to NZ
Originally Posted by Kotare
(Post 12269774)
There is no NZ gift tax and to my knowledge no tax of any kind on other monetary (cash) transfers. In theory they could ask you why you haven't declared any income deriving from the cash sum (if outside the 4 year grace period) :-).
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Re: Bringing money to NZ
Originally Posted by Kotare
(Post 12269672)
You will have to pay tax on any income from it (after 4 years) ie interest. The capital is unaffected.
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Re: Bringing money to NZ
Originally Posted by j19fmm
(Post 12269286)
I have some money still in the UK, not earned money, a gift. Do I still have to get it here within the 4 years to not pay tax on it?
There are two issues that you raise: a) NZ tax on Capital b) NZ Tax on Income earned from investments Re: The 4 year tax free window. I'll tackle this part first. When first arriving in NZ, new migrants may qualify as Transitional Residents and therefore are given 4 years from date of arrival to sort out financial arrangements. The Transitional Residents exemption means that any overseas income is tax free in NZ. There is also a similar 4 years for Pension transfers that allows you to move the capital of your pension savings to NZ without paying any NZ tax. There are two issues that you raise: a) NZ tax on Capital NZ does not tax capital, so the capital that you have been gifted, you will not pay tax on no matter how long you leave it in the UK b) NZ Tax on Income earned from investments However, any capital you have may earn income (interest, dividends etc). You will pay tax on that interest after the Transitional Residents exemption expires. You may also have to pay tax on any currency gains. Tax may sound simple, but its like a rabbit hole...... All the best. |
Re: Bringing money to NZ
Originally Posted by chc4me
(Post 12274063)
Hi,
There are two issues that you raise: a) NZ tax on Capital b) NZ Tax on Income earned from investments Re: The 4 year tax free window. I'll tackle this part first. When first arriving in NZ, new migrants may qualify as Transitional Residents and therefore are given 4 years from date of arrival to sort out financial arrangements. The Transitional Residents exemption means that any overseas income is tax free in NZ. There is also a similar 4 years for Pension transfers that allows you to move the capital of your pension savings to NZ without paying any NZ tax. There are two issues that you raise: a) NZ tax on Capital NZ does not tax capital, so the capital that you have been gifted, you will not pay tax on no matter how long you leave it in the UK b) NZ Tax on Income earned from investments However, any capital you have may earn income (interest, dividends etc). You will pay tax on that interest after the Transitional Residents exemption expires. You may also have to pay tax on any currency gains. Tax may sound simple, but its like a rabbit hole...... All the best. |
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