tease

Hi

Can anyone point me in the right direction?

We are planning on selling up and moving back to NZ, we will have the proceeds of two houses to lodge with a a Kiwi bank - is this any restriction on the total we can settle. I appreciate we will have to show the it is from a house sale and not drug money :-)

As an aside - has any one moved back within 10 years of leaving and managed to get the 4 year exemption or part thereof?

Many thanks

Tease

Kotare

Use Hifx or Xetrade - big difference in rates to banks.

No on 10 year point

Bo-Jangles

Presumably you are paying into a UK bank in the first instance before transferring to NZ; so I don't think anyone will have any questions on the source of the money and any bank here will be happy to 'take care' of it for you. I personally would not risk putting all eggs in one basket when it comes to NZ banks as there is no bank protection or guarantees. If you don't need the money right away I would take the time to investigate options for leaving money in the UK; max out on any ISA benefits and leave some on term deposit /or other higher interest accounts.

You might find higher interest term deposit accounts available in NZ as generally rates here are higher but will have to factor in the tax implications; you will not be taxed in NZ on overseas interest income for first four years, however if you transfer money to NZ you will be taxed on every cent of interest earned at source by the bank.

Kotare

'you will not be taxed in NZ on overseas interest income for first four years' Not correct unless poster is tax exempt which in this case it appears he is not.

chc4me

Hi, The 4 year exemption known as Transitional Residents Exemption is for all income earned from employment, interest or rental income. So the transfer of this money is not required to be declared and therefore the 4 year exemption is not relevant. However any investments that you retain in the UK including bank account interest, shares, etc, then you will need to declare the income earned from the investments to the NZ IRD. You do not qualify for the 4 year Transitional Residents Exemption if returning to NZ within 10 years, also there is no 'part' exemption, its an all or nothing situation.

There is a different exemption for private Pensions. You will be able to transfer any pension savings to NZ and apply an exemption even though you have been away for less than 10 years. Its a complex matter and you should seek advice.