endowments
Does anyone know if there are tax implications on keeping an endowment policy in the UK. I know if you go to Aussie you get taxed on yearly increase and final payout, is this the same in NZ.
many Thanks Steve |
Re: endowments
Originally Posted by salmey
Does anyone know if there are tax implications on keeping an endowment policy in the UK. I know if you go to Aussie you get taxed on yearly increase and final payout, is this the same in NZ.
many Thanks Steve I will be watching for reply's along with you because we are leaving an endowment. To be honest though, it wont make any difference to our decision even if we are taxed because it's definitely not worth cashing it in and our endowment is the type that cannot be sold on! typical Nick |
Re: endowments
You just keep schtum (OK quiet then) - least that's what I'm gonna do....oops - now I gone and told everyone...
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Re: endowments
Hope not, Im not telling anyone anyway. We have a couple of years left on ours and its not worth cashing it in now....hope the rate keeps stays similar to what it is now and it will be a nice little bonus for us. :)
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Re: endowments
yep i was thinking of simply keeping quiet about it , just not sure how closely the taxman/goverments work on this sort of info - would we get away with it?
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Re: endowments
I may be wrong but from the basic revenue information and the fact that they have a double taxation system with the UK, all forgien income is subject to tax - this also applies to income in kind i.e. unrealized growth of investments including endowments. Keeping quiet is probably the best option, but like all good banks - if you inject your funds into NZ you may flag a red light somewhere.
BR Shane |
Re: endowments
Originally Posted by shanedowd
I may be wrong but from the basic revenue information and the fact that they have a double taxation system with the UK, all forgien income is subject to tax - this also applies to income in kind i.e. unrealized growth of investments including endowments. Keeping quiet is probably the best option, but like all good banks - if you inject your funds into NZ you may flag a red light somewhere.
BR Shane |
Re: endowments
That's a thought, however maintaining a UK bank account means the Inland Revenue UK, will want a slice of the action. Any funds deposited in bank accounts raise awareness levels with parties that be (bank's are so kind) and large fund injections will without doubt be subject to scrunity.
I've already discussed with the UK inland revenue my contractor status - any cash injection into a UK bank account even though non-domicle and non-resident will be subject to UK tax. Main issue for me is that even though UK tax could be paid in this event, it will only act as a discount credit fot taxable income in NZ - could well end up with almost double tax. I'd love to hear how and if people work the system legally to their own benifit and not the taxman :-) BR Shane |
Re: endowments
assuming you haven't yet gone to NZ then when you do you will be required to pay tax in NZ on your worldwide income. however, for 4 years after you arrive you will be exempt from paying tax on non-employment (eg investment) income. after 4 years it will then subject to tax in NZ.
http://www.taxpolicy.ird.govt.nz/index.php?view=427 |
Re: endowments
Not sure if that is correct. There is a company over here that deals in second hand endowments and it talks about the policies being tax paid. The worry would not be the annual increase so much but if there was tax on the final bonus as this could be up to 40% tax. Need to go and talk to a pro on this matter as so far i have just been crossing my fingers which is stupid of me.
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