British Expats

British Expats (https://britishexpats.com/forum/)

- New Zealand (https://britishexpats.com/forum/new-zealand-83/)

- - TAX (https://britishexpats.com/forum/new-zealand-83/tax-664181/)

I know it's complicated but has anyone come to a general view about whether it is better to be taxed in UK or NZ? I have an 80 page UK tax guidance "leaflet" to wade through before even looking at NZ's regulations. which country, genrally speaking, has the least onerous taxes - UK or NZ.

Any views or experiences gratefullly considered.

Cliff, highgate, UK

GENESISsssssss....................

If you shourt hard enough he may hear you.

Unless you are talking simply comparing tax rates and/or you have a large sum(s) involved then I would think you should seek professional advice IMHO, without knowing the sort of exposure you have (income, capital gain, offshore???), it would be hard for even a gifted amateur to advise...

Quote:

Originally Posted by simonsi (Post 8499607)

Yes my sentiments entirely. If you intend to be a resident in NZ there is a 4 year tax break on all overseas income. So you may wish to consider that. If you do you cannot avail yourself to family tax credits in NZ. That is where you get an allowance in relation to what you earn and how many kids (if any) you have. No kids, no family tax credits. How ever I would seek advice from an expert in Nz once you land with refernce to this break. Or simply go to www.ird.govt.nz to ensure that all your UK earnings exposure is covered under the generous break they give new interns to the Colony.

Quote:

Originally Posted by Highgate (Post 8498793)

don't think you have much choice as to whether or not you are a resident for Tax Purposes in either country it is a case of whether or not you fit the criteria.

http://www.ird.govt.nz/yoursituation...glongterm.html

IR292 will tell you what you need to know, eg:

Quote:

Tax residence rules for
individuals
Who is a New Zealand tax resident?
You’re a New Zealand tax resident if:
• you’re in New Zealand for more than 183 days in any
12-month period, or
• you have an “enduring relationship” with New Zealand
(see below), or
• you’re away from New Zealand in the service of the
New Zealand government.
Te 183-day rule
If you’re in New Zealand for more than 183 days in any
12-month period, you’re considered to be a New Zealand
tax resident from the day you arrived. Te 183 days don’t
have to follow each other. For example, if you come to
New Zealand for 10 days in April and then return for 20
days in September of the same year, it will be counted as
30 days. If you’re in New Zealand for only part of a day, it is
counted as being a whole day. Tis means that the days on
which you depart or arrive are treated as “days present” in
New Zealand.
An enduring relationship with New Zealand
Te Income Tax Act 2004 says that a person, other than
a company, who has a “permanent place of abode” in
New Zealand is a New Zealand tax resident. Permanent
place of abode means more than just the building you live
in , it covers all your ties and links with New Zealand. Tese
may be social, physical, economic or personal. Overall, the
test could be described as whether you have an enduring
relationship with New Zealand.

there is a long discussion of how you can decide if you have an enduring relationship with NZ and the upshot is:

Quote:

Tis list is a guide only—you’ll need to consider your
overall situation when working out whether you’re a
New Zealand tax resident.
Please note that even if you maintain ties (or even a physical
home) in other countries you can still be a New Zealand tax
resident. As long as you have an enduring relationship with
New Zealand you’ll always be a resident.

Quote:

Originally Posted by simonsi (Post 8499607)

Thank you

Quote:

Originally Posted by Genesis (Post 8499619)

Thank you. That's helpful

Quote:

Originally Posted by lardyl (Post 8499823)

there is a long discussion of how you can decide if you have an enduring relationship with NZ and the upshot is:

Thank you