462

I have not posted here for a few years, but regularly read the items which are always interesting.

We were UK pensioners in our early ‘70’s and came to NZ in 2015 to provide support for our previously emigrated daughter who was diagnosed with a brain tumour. That was three and a half years ago and our support is still needed, although the tumour was removed. We had originally thought that by now we would be back in the UK, but it looks as if that will not be the case for some time to come.

We are NZ tax resident and towards the end of this year our four year rwt period will end when we will then be liable for full IRD tax. My queries relate to this subject. We now receive NZ Super, courtesy of the UK/NZ arrangement and we each have UK private pensions which are paid into UK banks. Our house is also let and this is disclosed to the HMRC each year. I understand from reading here that any profit on rental will incur an NZ tax liability.

How does the tax process start and is it correct that the tax has to be paid quarterly?
If our liability starts in November, when would the first payment be due and is that in arrears or advance?
How is income converted to NZD calculated, even if that its only brought in from time to time?
At what point do NZ savings accounts tax levels change from the 10.5% rwt?

We are obviously not in the financial position of being able to engage a tax consultant, so good guidance would be much appreciated. Thanks in advance!

escapedtonz

With reference to the final paragraph in your post below.........
You are in a financial position where professional advice from an authorized financial consultant who knows the ins and out of pensions and tax in both the UK and NZ is essential. You can't afford NOT to get that advice. Going along with "guidance" from members on a public form isn't the way to handle your finances in the short or long term.
Send a PM to Chc4me on here. He is an authorized financial adviser working out of a company in Christchurch and managed the transfer of our pensions from the UK in to an NZ superann fund and also manages our investment portfolio long term. His advice and guidance is highly recommended.

462

chc4me

Hi 462
Your questions are more tax focused than pension questions. I specialise in pensions and financial matters with a working knowledge of taxation.

For example I note you say you are declaring rental income of your UK property to HMRC, but as a NZ tax resident this is incorrect. I'd suggest you have actually overpaid tax.

You really need to seek advice from a suitable accountant that specialises in NZ and UK matters. Let me know if you need a couple of recommendations.

Warm regards

462

Thanks for your help. chc4me replied to my pm and gave useful advice. I have now contacted Mike Williams of TaxBridge and will be having a meeting with him in the near future.

462

My wife and I finally got around to having a meeting with Mike Williams of TaxBridge. What an enlightening experience! He is a pleasant and very knowledgeable ex-pat. We were so impressed we engaged him to act on our behalf for all the tax issues and can thoroughly recommend him. Thanks again to this forum for it's suggestions!

BEVS

Really good to eead. Chch4me is ace IMVHO

chc4me

I'm pleased to hear that. Mike is definitely great to deal with, really knows his stuff and always so helpful.