debnjohn

Hello,
Does anyone know what tax we will be liable for bringing money into NZ?
For example, if we came over with our house sale proceeds (unlikely due to exchange rate) would it be taxable?
Or if we left the equity in a UK offshore account until the rate improved/need to buy a NZ house, will it be taxable?
Thanks,
John.

JAJ

There is no capital transfer tax on the actual movement of funds. Despite the fact that virtually everyone seems to think that there is.

If you leave funds overseas after becoming NZ tax resident, then interest will be NZ taxable, as may be any currency gain (although as far as I know NZ does not have capital gains tax - others may confirm).

Jeremy

debnjohn

Thanks Jeremy.
Apparently there is no capital gains tax in NZ. It's an interesting point on currency gain, though. How would NZ assess the value of unsold assets (if the house didn't sell)? I guess NZ would take the eventual realisation price when the fund are transferred. I suppose this means if it stays in Sterling (or rather never gets converted to NZ dollars) then there is no tax to pay on a currency conversion gain. Or interest earned (if the equity from the house sale were invested). Sorry - just musing/rambling out loud.
John.

Kiwipaul

You are correct their is no CGT in NZ and currency exchange rate movements are considered capital gain or loss not income so again no tax to pay. You are liable for tax on any interest you recieve.

This only applies if you are a normal individual NOT a currency speculator making a living out of currency movements and then you are liable for any gains.

NZ has far less onerous tax regieme than Oz but then the wages are lower.