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Tax on money left behind in the UK

Tax on money left behind in the UK

Old Oct 27th 2006, 2:00 pm
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Default Tax on money left behind in the UK

HI all,
I was just wondering if anyone could enlighten me as to whether or not you would pay tax on interest earned on money left behind in the UK.
I know i will not pay tax in the uk on earnings up to 10k pa but i am wondering when the interest is taken into NZ will it be taxable.
I estimate the interest will be £875 per month and will be transfered monthly.
I envisage that one or both of us will be working and will this make a difference as to if the investment returns are taxed...

I am torn between leaving most of our monies in the uk and taking it to NZ. Either way it will be invested to provide an income to allow one of us to go to university. This will depend alot on the exchange rate and if it is tax free left in the uk. We will rent and not buy for this period to allow this to happen.
Any help and advice as to our plan would be appreciated. It has been our dream to entwine the emigrating to NZ with one of us studying to change our career for a long time now and were almost in a position to commence coming very soon.
thankyou Lee
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Old Oct 27th 2006, 2:24 pm
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Default Re: Tax on money left behind in the UK

Originally Posted by lmw999
HI all,
I was just wondering if anyone could enlighten me as to whether or not you would pay tax on interest earned on money left behind in the UK.
I know i will not pay tax in the uk on earnings up to 10k pa but i am wondering when the interest is taken into NZ will it be taxable.
Not sure where you got the £10K pa from. You mean two personal allowances? Anyway, you can always offshore it to the Isle of Man or Jersey and get it tax free that way.

I am torn between leaving most of our monies in the uk and taking it to NZ. Either way it will be invested to provide an income to allow one of us to go to university. This will depend alot on the exchange rate and if it is tax free left in the uk. We will rent and not buy for this period to allow this to happen.
Any help and advice as to our plan would be appreciated. It has been our dream to entwine the emigrating to NZ with one of us studying to change our career for a long time now and were almost in a position to commence coming very soon.
Leave it in the UK (or offshore UK). There's a special tax deal for new immigrants to NZ where all foreign investment earnings are tax free until 2011 (I think I've got the date right). Re-visit the issue in 4 years time..

K.
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Old Oct 27th 2006, 6:13 pm
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Default Re: Tax on money left behind in the UK

Originally Posted by kt0157
Leave it in the UK (or offshore UK). There's a special tax deal for new immigrants to NZ where all foreign investment earnings are tax free until 2011 (I think I've got the date right). Re-visit the issue in 4 years time..

K.
Yes you are right on this, however have you found any offshore accounts offering decent levels of interest, ie return, to make this worthwhile? I can't find anything at even 5%, which I consider pretty crap (ie all lower than onshore High Street UK rates), and with a significantly higher interest rate in NZ, the net firgure after tax looks higher than leaving funds offshore and making use of this ruling. Silly really as it doens't look like the incentive it's meant to be. If you have any good news on this, please please enlighten me as I would be delighted to stand corrected in light of attractive offshore interest rates. I have been searching in vain. Although the 2 personal allowances are obviously worth taking advantage of.
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