annabel1

Hi,
I was just wondering if anyone in NZ is currently renting out their UK property ? After much thought we have decided to rent out our house so we can actually get over to NZ and start living the dream which is much awaited !

Now I am wondering if we will be taxed big time for this as an income although not in the UK ? If we use a letting agent is this something they sort out or not ? If we decided to move the money to NZ would we get hit a second time for tax ?

Sorry for so so many questions ! ! ! ! my head is buzzing !

Any advice or personal experience would be greatly appriciated

Jo-Chris

Hi, we have a property in the UK that we rent out.

The first thing you should look at is the 4 year tax excemption for new immigrants to NZ. See here and here. In fact the NZ IRD website is very handy in general. If you claim this excemption then you can not also claim some child benefits over here (tarde off), so you will need to look at your figures to see which works out best for you.

You will still get taxed by the UK on any income from the UK (inc your rent) but only after you have deducted interest on your mortgage, rental agents fees, services etc. Plus you still get the first bit of your income tax free (as you do now) as long as you are a tax resident in the UK.


The UK and NZ have a double taxation agreement so you won't get taxed at both ends. NZ may look to see how much tax you paid on income in the UK and then compare it with rates hence you may owe a little bit more in tax here but you will not pay twice!

jmh

I've got a letting agent coming round tomorrow to find out what's required. Obviously won't know about NZ tax, but will know the UK picture.

Although I'm a returning kiwi I would actually qualify for the tax exemption Jo-Chris has linked to which is good news. I had heard that you can stop your agent deducting tax at source if you fill in a particular form, so I'll have to ask about that.

I'll let you know if she says anything useful!

Am Loolah

From memory there is an Inland Revenue Overseas Landlords form to complete that will stop tax being deducted at source.

Cape Blue

the NRL1 form

Stormer999

Don't know if this is relevent

http://www.holidaylettings.co.uk/tra...t/a-3-55-2230/

jmh

Well the agent's visit was very useful, and I recommend you get someone round to ask all the questions you have. The only surprise was the difference between letting furnished and unfurnished. He said that it would make no difference to how much rental I would get if I let furnished or not, but if the property was vacant and let furnished I would be liable for council tax, but if unfurnished I would not. Worth knowing I thought.

Cape Blue

But it might make a difference to how long the property is empty, my experience was that unfurnished stayed emptier longer between tenants (i.e. there was more of a demand for furnished). I am also not sure about the no council tax bit, different councils interpret that different ways and I would check your local authority if I were you.