Interest on savings and Inheritance tax
Oct 25th 2010, 9:50 pm
#1
Newbie in New Zealand
Thread Starter
Joined: Sep 2010
Location: Omokoroa until January
Posts: 135
Interest on savings and Inheritance tax
Hi we are just getting our financial affairs in order before we leave. I have 2 questions that I would appreciate advice on:
1. Does anyone know if we will have to pay tax on our savings left in UK bank and building society savings accounts?
2. When we are living in NZ will we have to pay Inheritance tax on a UK estate that we benefit from
Thanks
1. Does anyone know if we will have to pay tax on our savings left in UK bank and building society savings accounts?
2. When we are living in NZ will we have to pay Inheritance tax on a UK estate that we benefit from
Thanks
Oct 26th 2010, 1:36 am
#2
Retired
Joined: Apr 2004
Posts: 34,649
Re: Interest on savings and Inheritance tax
1. The UK bank might (or might not) deduct 20% tax from the interest. If so, you have to reclaim it from HMRC. If you are taxable in NZ on the interest, you normally get a credit for any UK tax suffered.
2. UK Inheritance Tax is based on estate, not beneficiaries, so you may well still be liable. In fact, usually the estate pays the tax before you even see any benefit. 94% of UK estates are not liable to tax anyway, so you may well be lucky (or not, depending on your point of view).
2. UK Inheritance Tax is based on estate, not beneficiaries, so you may well still be liable. In fact, usually the estate pays the tax before you even see any benefit. 94% of UK estates are not liable to tax anyway, so you may well be lucky (or not, depending on your point of view).
