Can you do this?
Feb 6th 2008, 8:46 am
#1
BE Forum Addict
Thread Starter
Joined: Sep 2006
Posts: 4,298
Can you do this?
Hello, can you move money from the UK from a joint account which is in hubbie and wife's name into NZ via hubbie's sole account (who earns virtually nought as wife is the bread winner) to be tax effective?
IE, I would be charged 19.5% whereas any money in an account with wife's name on it will attract 34% or thereabouts. Is this acceptable? Anyone know?? Thank you in anticipation.
IE, I would be charged 19.5% whereas any money in an account with wife's name on it will attract 34% or thereabouts. Is this acceptable? Anyone know?? Thank you in anticipation.
Feb 6th 2008, 11:28 am
#2
Galaxy 1: Cadbury's 0
Joined: May 2005
Posts: 1,606
Re: Can you do this?
Hello, can you move money from the UK from a joint account which is in hubbie and wife's name into NZ via hubbie's sole account (who earns virtually nought as wife is the bread winner) to be tax effective?
IE, I would be charged 19.5% whereas any money in an account with wife's name on it will attract 34% or thereabouts. Is this acceptable? Anyone know?? Thank you in anticipation.
IE, I would be charged 19.5% whereas any money in an account with wife's name on it will attract 34% or thereabouts. Is this acceptable? Anyone know?? Thank you in anticipation.
Common sense says 'yes'.
Why would you not be able to do this? You are free to pass money between each other freely. So I suppose the way it would be looked at is your wife is giving you her half of the money in your current joint account.
This is exactly the sort of thing financially astute people do.
I have just set up a regular savings account in my name, since I am in a similar situation to you. Technically it is hubbie's earnt money, but that is one of the 'benefits' of being married, is it not?
One more thing worth checking out though is if you can qualify for the 4 year investment ruling which would give you 4 years interest on offshore accounts tax free? You may have moved to NZ before it came into effect, but if not, do the sums on whether it is worth earning a slightly lower interest rate but net of any tax, or an NZ rate at the 19.5% you mentioned. Another advantage of doing this is that the current exchange rate is CRAP.
Feb 6th 2008, 4:54 pm
#3
BE Forum Addict
Thread Starter
Joined: Sep 2006
Posts: 4,298
Re: Can you do this?
Common sense says 'yes'.
Why would you not be able to do this? You are free to pass money between each other freely. So I suppose the way it would be looked at is your wife is giving you her half of the money in your current joint account.
This is exactly the sort of thing financially astute people do.
I have just set up a regular savings account in my name, since I am in a similar situation to you. Technically it is hubbie's earnt money, but that is one of the 'benefits' of being married, is it not?
One more thing worth checking out though is if you can qualify for the 4 year investment ruling which would give you 4 years interest on offshore accounts tax free? You may have moved to NZ before it came into effect, but if not, do the sums on whether it is worth earning a slightly lower interest rate but net of any tax, or an NZ rate at the 19.5% you mentioned. Another advantage of doing this is that the current exchange rate is CRAP.
Why would you not be able to do this? You are free to pass money between each other freely. So I suppose the way it would be looked at is your wife is giving you her half of the money in your current joint account.
This is exactly the sort of thing financially astute people do.
I have just set up a regular savings account in my name, since I am in a similar situation to you. Technically it is hubbie's earnt money, but that is one of the 'benefits' of being married, is it not?
One more thing worth checking out though is if you can qualify for the 4 year investment ruling which would give you 4 years interest on offshore accounts tax free? You may have moved to NZ before it came into effect, but if not, do the sums on whether it is worth earning a slightly lower interest rate but net of any tax, or an NZ rate at the 19.5% you mentioned. Another advantage of doing this is that the current exchange rate is CRAP.
Feb 6th 2008, 5:08 pm
#4
Galaxy 1: Cadbury's 0
Joined: May 2005
Posts: 1,606
Re: Can you do this?
[QUOTE=Genesis;5894998] gift tax QUOTE]
Good point. No idea if this is applicable to your scenario. One would hope not. It's no surprise people generally don't save (much) is it? Lots of other factors come into the save/spend/debt debate I know, but it just sprung to mind.
Maybe Cyberpunk will come along and have some advice.
Good point. No idea if this is applicable to your scenario. One would hope not. It's no surprise people generally don't save (much) is it? Lots of other factors come into the save/spend/debt debate I know, but it just sprung to mind.
Maybe Cyberpunk will come along and have some advice.
Last edited by uk+kiwi; Feb 6th 2008 at 5:10 pm.
