LittleGreyCat

Very much a speculative question as we haven't been granted Parental Visas yet (and may not be) but it seems sensible to do a bit of planning at this stage just in case.

First question:
If you emigrated but kept your house in the UK for a few years (to stay on the housing ladder in case it didn't work out) what were the implications for Capital Gains Tax when you sold?
I realise that things may well be different now but past experience would be very helpful.

Second question:
Did you fall foul of restrictions on second home owners (even if you didn't own a home in NZ)?

Third question:
Did you empty your house and put goods into store to avoid problems with burglaries?
[Secondary: did you fit or enhance burglar alarms?]

We are contemplating what we should plan if we are going to leave the UK for more than 6 months of the year AND register as tax resident in NZ.
The longest we have been away is 7 months but we had someone living in the house.

Justcol

As I understand it
NZ doesn't have CGT. There is bright line test, where you pay tax if you've sell a property within 10 years of buying it, but that is only applicable to NZ property and not applicable to your main residence in NZ.
they can't apply bright line to your UK home.

​​​​​​Should you sell your UK home in the future, you may pay income tax on monies brought to nz.

My advice is reach out and contact an NZ based financial advisor. Dai (chch4me) may be able to provide better professional advice

Does Brightline tax apply to family home?
A property will not be taxable under the bright-line property rule if you meet one of the following exclusions: it's your main home and your use meets certain criteria. it's used predominately as business premises. it's being used as farmland or capable of being used as farmland.7/03/2023

LittleGreyCat

I was more wondering if the sale would be liable for UK tax.

LittleGreyCat

Now that is a scary thought.
Assuming the family home is worth £400k/$800K that could be a fair chunk of tax.

Yes, we will be taking professional advice if we ever get that far, just looking at the moment for people who have already been down that route in the last 5 years or so.

Timmy Chch

I believe you get 4 years to bring all your financial affairs over to nz tax free...

If you're a new tax resident or returning to New Zealand after 10 years, you may be eligible for a 4-year temporary tax exemption on most types of foreign income...

https://www.ird.govt.nz/international-tax/individuals

christmasoompa

You'd be liable for CGT if you did sell it a few years after leaving, there are exemptions i.e. a 3 year absence exemption (4 years if sent to work abroad by an employer), but you do have to return to the property for that to apply. If you don't return then from what we've been told by our tax advisors it's a very short period of time now before CGT kicks in, unless you qualify for some other exemption.

https://www.gov.uk/tax-live-abroad-sell-uk-home

https://www.gov.uk/government/public...ce-relief-2023

Clappy

Somewhere in the back of my mind I have heard that the UK has changed the rules in this area in recent years so UK tax is not as unlikely as it once was.

This is an area with two different countries changing the rules at both ends so a consultation with someone who's job it is to keep up with those rules is the best move at this point I would say.

LittleGreyCat

Thanks - very useful reading.
All sorts of interesting options, including getting relief if you return for 90 days (allegedly).
That would fit in with 6 months + 1 day in NZ then back to the UK for another summer.
Sounds too good to be true.