manchaka

I haven't seen any posts on here about this at all so thought should mention - there's an exemption for any income not derived within NZ for new migrants which you can claim for your first 4 years of residency - that's on ANY World income not including direct employment or supply of services not made in NZ! (Apparently this is granted to all new migrants automatically for up to 49 months, but it'd be worth speaking with the NZ Tax people just to check nce you're there.)

There are also opportunities to set-up a pre-migration trust before landing in NZ (you only get one opportunity to do this so think about it if you have substantial assets) or NZ personal or family trust which can ringfence assets generating income once you've landed to save tax on non-NZ assets & income eg share dealing, property profits, fixed income investments etc - which you can use to protect assets generally - trusts must have beneficiaries and trustees of course just like any other UK or offshore trust - but any free money's worth having in my book if the math works-out!

For example, one's children could be beneficiaries and parents could be trustees - to build-up a nest-egg for them when they really need it, at say 21 or 25 years of age... maybe a combination of tracker funds, ETF's, OEICS, publicly-quoted Investment Trusts or shares - just a thought:

http://alturl.com/orej
http://alturl.com/j6vt

Check the lower column on the rh side of that first page - some useful general guidance in there too (this isn't a recommendation for Broadbase please note - just for the info!) - the second link is to the NZ Tax website

Best,
AMx

Genesis

You need to check when they started this as we missed the boat arriving in april 2005. As such we pay tax on the interest we earn in the UK. It was not in force when we arrived.

manchaka

Note this only applies to anyone landing in NZ after 1st April 2006

AM x

jennifer45

I know it covers income such as rental from unsold houses but does it cover pensions, annuities etc, interest on savings in banks and BS ? .
As pensioners all our income is derived from 5 pensions, annuities and interest from savings etc. Don't want to rent out house- too much hassle and stress- rather gift wrap it, which is what they seem to want now-a-days/ or just leave it on the market and give solicitor PoA with conditions.
Anyway back to original question- what 'income' does it actually cover?
Thanks
J

manchaka

Have a look at the second link above and send NZIRD an email on it rather than get a specialist - seems a straightforward enough situation - but NZ Tax do specify that only non-NZ payments derived from 'employment or provision of services' is taxable as income during the exemption period so sounds like you may be OK although in true 'taxspeak' the Broadbase website (see below) says that if you receive 'UK State Pension directly... it will form part of your taxable income in New Zealand and will need to be declared on your NZ tax return'. Send the IRD an email, let them know your circumstances fully and don't be afraid to ask direct questions on what may or may not be taxable as income in NZ during your first 49 months of residency - Hope this helps

http://www.broadbaseimmigration.co.u...-pensions.html
http://www.broadbaseimmigration.co.u...transfers.html

Best,
AM x

jennifer45

I really don't mind paying tax in NZ- not being a MP or a city banker etc, I just want to make sure we pay what we have to, but keep what we can.
Thanks for the advice- will check it out.