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Bringing money to NZ

Bringing money to NZ

Old Jun 9th 2017, 9:28 am
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Default 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
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Old Jun 9th 2017, 7:05 pm
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Default Re: Bringing money to NZ

Originally Posted by j19fmm View Post
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
You will have to pay tax on any income from it (after 4 years) ie interest. The capital is unaffected.
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Old Jun 9th 2017, 11:23 pm
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Default 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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Old Jun 9th 2017, 11:28 pm
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Default Re: Bringing money to NZ

Originally Posted by Skoskie View Post
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?
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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Old Jun 9th 2017, 11:47 pm
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Default Re: Bringing money to NZ

Originally Posted by Kotare View Post
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) :-).
Thank you for the reply -that's something I'll have to investigate!
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Old Jun 10th 2017, 1:22 am
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Default Re: Bringing money to NZ

Originally Posted by Kotare View Post
You will have to pay tax on any income from it (after 4 years) ie interest. The capital is unaffected.
Thanks, takes the heat off then!
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Old Jun 15th 2017, 9:31 pm
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Default Re: Bringing money to NZ

Originally Posted by j19fmm View Post
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?
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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Old Jun 16th 2017, 7:01 am
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Default Re: Bringing money to NZ

Originally Posted by chc4me View Post
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.
Thank you As I've only just been gifted it and there is no interest on it, I'll leave it where it is until the rate improves
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