UK to NZ Finance
Posted by devegano@reddit | expats | View on Reddit | 2 comments
I'm moving to NZ from the UK with my family later this year, we are selling our house so will have a fair chunk of change to hold onto before we're allowed to buy in NZ.
If I put the money in a fixed rate interest account do I just pay tax on interest to HMRC until I move it? I think there is a 4 year transition rule?
I also have an ISA, does the tax efficiency only work for the time between leaving and becoming a tax resident or is it backdated to the date of arrival? Does the 4 year transition rule apply here also?
Did anyone speak to an advisor and if so, any recommendations?
I'm thinking if I just pool all cash I have and dump it in a fixed account it might be easier to manage.
why-complicated@reddit
Fixed rate - If it’s in the UK, you’ll pay tax to HMRC, but won’t owe the NZ IRD anything because of transition residence.
ISA - NZ backdates tax residence to date you arrive. But it’s irrelevant for you due to 4y transition rules.
Advisors - can’t recommend one, sorry.
Pooling cash - Without knowing what you have, it’s hard to say if this makes sense or not.
Pensions between the countries are not similar. It’s easier for you just use ChatGPT to ask “contrast kiwisaver and UK workplace pensions” to explain the differences. Essentially they are taxed very differently.
Wild-Illustrator9639@reddit
In a similar situation and keen to hear responses