Financial question
#1
Financial question
Just a quick query regarding taking money over from UK to NZ.
I am a Kiwi, husband is British.
If we come to New Zealand we plan to sell our property here and use any profit as a deposit on property in NZ. Does anyone know the tax implications of this. I know there is a 10 year tax exemption rule of some kind for kiwi's returning to NZ, I will probably not meet this timescale by at least a year. Does this mean I would get taxed on any money we transfer to NZ or if hubby transferred it would he be exempt as a new migrant???
Thanks in advance for any advice.
Dannigirl.
I am a Kiwi, husband is British.
If we come to New Zealand we plan to sell our property here and use any profit as a deposit on property in NZ. Does anyone know the tax implications of this. I know there is a 10 year tax exemption rule of some kind for kiwi's returning to NZ, I will probably not meet this timescale by at least a year. Does this mean I would get taxed on any money we transfer to NZ or if hubby transferred it would he be exempt as a new migrant???
Thanks in advance for any advice.
Dannigirl.
#2
Re: Financial question
There is no tax on money transfers.
The exemptions you are talking about are if you leave money offshore earning interest (or other investment income like dividends), then you can earn tax free income (from a NZ tax perspective) for a period of time. That means if you qualified for such an exemption, it might be worth putting money in to a tax free haven such as Jersey or IOM (that is assuming there would be any income, I know interest rates are very low at the moment).
I hadn't heard about the 10 year returning kiwi rule (wasn't aound in my day), but I knew about the new migrant exemption. Obviously your hubby would be eligible for the offshore investment income exemption for any funds in his name.
To be honest (and given GBP and EUR interest rates at present), your bigger decision will be a) whether and when to sell UK property, and b) whether and when to transfer money from GBP to NZD.
Obviously, as with all matters investment related, I recommend you carefully consider all options very carefully, and seek professional advice if you are unsure.
The exemptions you are talking about are if you leave money offshore earning interest (or other investment income like dividends), then you can earn tax free income (from a NZ tax perspective) for a period of time. That means if you qualified for such an exemption, it might be worth putting money in to a tax free haven such as Jersey or IOM (that is assuming there would be any income, I know interest rates are very low at the moment).
I hadn't heard about the 10 year returning kiwi rule (wasn't aound in my day), but I knew about the new migrant exemption. Obviously your hubby would be eligible for the offshore investment income exemption for any funds in his name.
To be honest (and given GBP and EUR interest rates at present), your bigger decision will be a) whether and when to sell UK property, and b) whether and when to transfer money from GBP to NZD.
Obviously, as with all matters investment related, I recommend you carefully consider all options very carefully, and seek professional advice if you are unsure.
#3
you dewty owld maan!
Joined: Oct 2005
Location: is practically perfect in every way
Posts: 5,565
Re: Financial question
ird.govt.nz is your friend.
any exemption on income tax levied on some types of overseas income (eg rental income, but not income for work done in NZ for a UK company) depends on when you/your partner left.
also if you take it then you will not be eligable for tax credits.
any exemption on income tax levied on some types of overseas income (eg rental income, but not income for work done in NZ for a UK company) depends on when you/your partner left.
also if you take it then you will not be eligable for tax credits.
#4
Re: Financial question
Thanks guys.
Money transfers is the main issue I think, well aside from the small issues of selling our flat and and the rotten exchange rate!!! arrrrrgh
Money transfers is the main issue I think, well aside from the small issues of selling our flat and and the rotten exchange rate!!! arrrrrgh