MrsFychan

good advice, also as I stated the rules on renting and selling property has changed, April 2015, so any advice that is made on systems that were in place before that will be out of date and may not be relevant now.

please seek professional advice. Also please update on what you find out.

Baz036

Does anyone know of tax accountants with the required knowledge? Last one I tried cost $1k and knew less that I did!
I know it is tax deductible but I would rather pay someone who knew what they were talking about.
PM me if you are not wanting to chuck on a forum and fell free to supply more than one I can try.
Ta

jmh

That was what my accountant told me so I did a UK tax return on the rental income as recommended. Fortunately most years the income fell below the tax free allowance.

Pulaski

I think you, and your accountant, are correct - most countries tax income generated within their borders. The treaty that prevents double taxation relieves the tax burden by giving you a credit of the tax paid in the UK against the tax assessed where you live.

chc4me

I'll take a guess and say that the accountant you mention was based in the UK?

Once you start to live in NZ, you become a NZ Tax Resident. This means NZ then has the 'taxing rights' to worldwide income including Rental income. See this IRD link for more information.

NZ does not have a tax free allowance for personal income, instead it offers a 4 year tax free window to those that qualify. Heres a link for info.

As previously posted, please seek Tax Advice from a suitably qualified and knowledgeable Accountant, preferably one that has experience and specialises in dual country advice. Note, I am not an accountant. The information above I have gleemed from many IRD presentations, discussions, personal research and from working in my own specialised area of UK Pension transfers.

Baz036, I'll send you a PM.

Pulaski

That is normal for most if not all major industrialized countries, ..... but does not stop countries taxing income generated within their borders from assets owned by non-residents. In other words, just because NZ taxes your global income that does not stop HMR&C taxing your income generated in the UK.

The interaction of the taxation of locally generated income with the taxation of the global income of residents, is what makes international taxation so immensely complex.