Kotare

You become tax resident in NZ 6 months after arrival, or day 1 if you wish (this isn't an optional extra) :-) All NZ derived income is declared and tax paid in NZ.

UK derived income does not need to be declared in NZ for 4 years after arrival. UK State pension is paid tax free, though included in gross income total. I had my occupational pension paid tax free in UK and my uk bank interest/investment income (house) was declared in NZ after 4 years. I would check on the non resident (which you would be) treatment of investment income in uk to make sure you don't break any rules.

The interesting aspect is your house, I assume you remain liable for uk capital gains (none in nz) which might dictate when/if you want to sell it.

Usual caveats, this my understanding of the situation, The loose ends are in the UK where you might want an advisor.

Good luck
Peter

chc4me

Hi Little grey cat. Once you arrive in NZ, you become a NZ tax payer. That means NZ has the "taxing rights" to worldwide income and you are liable for tax in NZ. This also includes House Rental income and it will need to be declared in NZ, but the 4 year tax free exemption also applies to this. Because of the Double taxation agreement, you no longer pay tax in the UK, and the UK personal tax allowance no longer applies.


The reason to seek tax advice is that tax is a complicated subject and can have even the most diligent researcher in a tangle before long.

Best wishes.

Stormer999

My UK Basic State pension added to my Additional State pension frozen means it will be quite a few more years before the NZ option becomes attractive especially with the current exchange rate.

LittleGreyCat

My starting point is https://www.gov.uk/tax-uk-income-live-abroad/overview

Which says:

"1. Overview

You usually have to pay tax on your UK income even if you’re not a UK resident. Income includes things like:

pension
rental income
savings interest
wages

If you’re eligible for a Personal Allowance you pay Income Tax on your income above that amount. Otherwise, you pay tax on all your income.

The country where you live might tax you on your UK income. If it has a ‘double-taxation agreement’ with the UK, you can claim tax relief in the UK to avoid being taxed twice.

You don’t normally pay tax when you sell an asset, apart from on UK residential property.

When tax isn’t due or is already deducted

Non-residents don’t usually pay UK tax on:

the State Pension
interest from UK government securities (‘gilts’)
If you live abroad and are employed in the UK, your tax is calculated automatically on the days you work in the UK.

Tax on your savings interest is deducted by your bank or building society unless you give them form R105."

In conjunction with reading a lot in Private Eye about non-doms avoiding UK tax through living in tax havens, I tentatively conclude that if I am paying tax in NZ on anything apart from property income then I pay no UK tax.

There seems to be a suggestion that because there is a double-taxation agreement between the UK and NZ then I don't have to pay UK tax, but because there is a 4 year tax holiday for migrants I don't have to pay tax in NZ either. This would be loads of fun because I could (fates willing) come over for 4 years and take most of my income tax free. However I am not yet convinced that the tax authorities of the UK and NZ have conspired to be enormously generous to potential tax payers.

Is there anyone around who has moved in the last 4 years and is on an occupational pension which would have been taxed in the UK (that is, above £10,600 per annum) and who is taking the whole thing free of any NZ or UK tax whatsoever?

Pretty please?

Edit: "to avoid being taxed twice" is the key phrase for me. Unless the first 4 years in NZ are considered to be taxed at zero percent and this still counts as being taxed.

Kotare

[QUOTE=LittleGreyCat;11859518]My starting point is https://www.gov.uk/tax-uk-income-live-abroad/overview

Which says:

"1. Overview

You usually have to pay tax on your UK income even if you’re not a UK resident. Income includes things like:

pension
rental income
savings interest
wages

If you’re eligible for a Personal Allowance you pay Income Tax on your income above that amount. Otherwise, you pay tax on all your income.

The country where you live might tax you on your UK income. If it has a ‘double-taxation agreement’ with the UK, you can claim tax relief in the UK to avoid being taxed twice.

You don’t normally pay tax when you sell an asset, apart from on UK residential property.

When tax isn’t due or is already deducted

Non-residents don’t usually pay UK tax on:

the State Pension
interest from UK government securities (‘gilts’)
If you live abroad and are employed in the UK, your tax is calculated automatically on the days you work in the UK.

Tax on your savings interest is deducted by your bank or building society unless you give them form R105."

In conjunction with reading a lot in Private Eye about non-doms avoiding UK tax through living in tax havens, I tentatively conclude that if I am paying tax in NZ on anything apart from property income then I pay no UK tax.

There seems to be a suggestion that because there is a double-taxation agreement between the UK and NZ then I don't have to pay UK tax, but because there is a 4 year tax holiday for migrants I don't have to pay tax in NZ either. This would be loads of fun because I could (fates willing) come over for 4 years and take most of my income tax free. However I am not yet convinced that the tax authorities of the UK and NZ have conspired to be enormously generous to potential tax payers.

Is there anyone around who has moved in the last 4 years and is on an occupational pension which would have been taxed in the UK (that is, above £10,600 per annum) and who is taking the whole thing free of any NZ or UK tax whatsoever?

Pretty please?

Edit: "to avoid being taxed twice" is the key phrase for me. Unless the first 4 years in NZ are considered to be taxed at zero percent and this still counts as being t.... "

9 years ago we moved over (for 3 years before leaving again). At that point the UK agreed to pay our pensions (mil and teachers) tax free in NZ on the basis we were resident in NZ. We were NZ tax resident (NZ IRD give you an official form declaring you NZ tax resident) and we just declared NZ income. No guarantee UK would still do this. Note we used the R105 to get bank interest tax free.

Just in the throes of getting occupational pensions UK tax free again, though we won't get NZ tax relief second time around :-)

Peter

Stormer999

Yes.

LittleGreyCat

Thanks Kotare and Stormer999 - that looks very encouraging.

Perhaps I will believe in the Tax Fairy after all!