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Homes in UK and NZ

Homes in UK and NZ

Old Mar 2nd 2008, 10:37 am
  #1  
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Default Homes in UK and NZ

Grateful for advice please.
We are retired and would like to move to NZ but would probably only be allowed Visitor Visas for 9 months in 18 months. Therefore will have to keep a UK house.

It would be helpful to know the implications of owning a second house in NZ.
Things that spring to mind include:
Best way of using the 9 month allowance eg whether to split or whether tax year impact?
Which house is best main residence for tax purposes?
Whether to rent out NZ (or UK) house when not in residence (rental income would be taxed).
Whether to pay UK or NZ income tax.
If need to sell up in NZ at future date what are capital gains tax implications and can they be reduced/avoided?
How to keep air flight costs to a minimum.

Is anyone else in the same position and could advise or point us in the direction of good info?
Thanks
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Old Mar 2nd 2008, 5:44 pm
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Default Re: Homes in UK and NZ

There are no capital gains taxes in New Zealand that I am aware of. If you continue to buy and sell houses though the government 'may' twig that you are doing it for income and you will be taxed accordingly.
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Old Mar 2nd 2008, 5:55 pm
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Default Re: Homes in UK and NZ

Thanks. But if I opted to pay my income tax in UK rather than NZ I think I would have to pay UK capital gains tax on sale of a second home. There may be something about making the NZ house the main residence for a number of years before selling, to reduce or avoid captal gains.
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Old Mar 2nd 2008, 6:15 pm
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Default Re: Homes in UK and NZ

Wouldn't you have to have some sort of residence status in New Zealand to claim it as your place of domicile?

Oh man. Taxes, pensions and whatnot...I'm out of my depth here, mate. You had better see a qualified accountant.

Good luck with your plans.
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Old Mar 2nd 2008, 6:20 pm
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Default Re: Homes in UK and NZ

Originally Posted by Chrisnn View Post
Thanks. But if I opted to pay my income tax in UK rather than NZ I think I would have to pay UK capital gains tax on sale of a second home.
I have an inclining it doesn't work like this - there isn't double indemnity on tax - or some such ilk - you can opt to not pay tax in the UK on a pension (i know this as hubby will leave the forces with a pension) but have to pay it in NZ instead. If it is taxed in the UK it will also draw a certain amount of tax in the NZ (but i believe only the amount after tax). It get very complicated - best see a financial advisor i think.
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Old Mar 3rd 2008, 6:45 am
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Default Re: Homes in UK and NZ

Originally Posted by Chrisnn View Post
Grateful for advice please.
We are retired and would like to move to NZ but would probably only be allowed Visitor Visas for 9 months in 18 months. Therefore will have to keep a UK house.

It would be helpful to know the implications of owning a second house in NZ.
Things that spring to mind include:
Best way of using the 9 month allowance eg whether to split or whether tax year impact?
Which house is best main residence for tax purposes?
Whether to rent out NZ (or UK) house when not in residence (rental income would be taxed).
Whether to pay UK or NZ income tax.
If need to sell up in NZ at future date what are capital gains tax implications and can they be reduced/avoided?
How to keep air flight costs to a minimum.

Is anyone else in the same position and could advise or point us in the direction of good info?
Thanks
Hi, I know a retired couple in the UK, they provided us with so much information about NZ before we moved over. They spend 6 months in NZ and they own a house in Nelson. If you'd like to PM me I can provide more details.
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Old Mar 3rd 2008, 8:14 am
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Default Re: Homes in UK and NZ

Thanks Archangel,
I am not allowed to send a personal message until I have made at least 3 posts. I will contact you asap.
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Old Mar 3rd 2008, 9:31 am
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Default Re: Homes in UK and NZ

Originally Posted by Chrisnn View Post
Thanks Archangel,
I am not allowed to send a personal message until I have made at least 3 posts. I will contact you asap.
nearly there........bumpty bump.....
tax is all about tax residency, Mr IRD will help:
www.ird.co.nz
at
http://www.ird.govt.nz/forms-guides/...residence.html

not sure about UK but I suppose if you are a holidaymaker then you could flit between the two and never pay tax.......but we know who you are and the Revenue are no doubt monitoring this website.......
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