UK to NZ fund transition
Question from beth updated on 1st June 2018:
I am a NZ resident and have been here for about 14 years from the UK. I am about to sell my UK property and bring the money to New Zealand to build a new family home.
What sort of tax implications are there and what, if any, are the options to reduce losing a chunk of my money? For example, could I transfer some funds to our builder for payment or somehow reduce tax by purchasing New Zealand products directly from my UK bank account?
Our expert Mark Withers responded:
Firstly, you will need to investigate in the UK whether any capital gains tax is payable over there. There will be none in New Zealand.
You have not indicated whether you have any debt on the property. But, if you have, in some circumstances there is a wash up calculation required to determine if there is any forex gain or loss on repayment of any debt. You may also have claimed depreciation on the property in New Zealand and this would still be subject to recovery here.
There is no tax payable here though simply by virtue of the funds being moved back to New Zealand.
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.