Money In the UK

[HelenH77]

Quick Question
My husband and I have left our savings in the UK until the exchange rate gets better - it's currently in a general savings account in both our names (I'm British my Husband is a Kiwi) - I just read before about house selling and tax you pay when you are not a British Citizen - would there be any reprecussions for us, if we wait over 6 months to transfer the money to NZ when we have found a house and (hopefully) the exchange rate improves??. Or do I really need to get it sent over ASAP??.
Lastly thanks to everyone who replied on the GBP to NZ$ mail - I'm about to sort out an XE account and speak to the bank.
H

[JandM]

I just read before about house selling and tax you pay when you are not a British Citizen

Can you give a link to what it is you've been reading?

[chocolate cake]

Probably referring to capital gains tax which would be applicable I guess if the house is not your main residence. It think would begin to apply after a period if you rented it out. Not sure on the periods involved, but any profit and it's only profits would get apportioned out over the period of residence/non residence.

[Mamee & Co]

Haven't checked the legislation recently but you used to get the last two years of ownership discounted in any GCT calc, along with the time that the building was youy main residence (ie where you lived).

[HelenH77]

Sorry I think I'm confusing the matter. There was a thread about the tax you pay on selling your house after you have left the country that you sold it in which freaked me out a little.
I have savings in the UK, in a bank account and am worried if I am liable to pay any tax as I've moved to NZ and if it takes 6+ months to transfer the money.
I have spoken to HSBC about opening a GBP account over here (in NZ) and transferring the funds from my UK HSBC account, I think that for sound of mind I might go with that option.
Sorry but foolishly I didn't really look into this until I'd left the UK!.
H

[Duncan74]

Beware of anything you read on the internet!

I think you got freaked by a post regarding someone in Canada and some issues they had with the canadian capital gains tax.

As I understand, the worst that you'll have to do is pay tax on the interest you earn (in the UK), but you get a 4 year exemption for those funds from NZ tax.

HSBC Uk and HSBC NZ have no real connection other than name, and unless you are a HSBC premier customer then most of us have found them not that helpful / useful. Added to that, they only have branches in Auckland (again, depending on if you're premier then 1 or 3 branches I think).

[IanR]

HSBC Auckland will let you open accounts in several overseas currencies $US, $AUS, YUAN, £UK, EUR, $HK and more.

You will receive little or no interest on overseas currencies but a decent rate on the $NZ.

I'm not sure why you think the £UK is going to improve anytime soon? If you look at the chart on this site

http://www.emigratenz.org/forum/showthread.php?t=34649

and select GBP/NZD measured weekly you'll see the £'s in freefall and the charts 'forecast' the £ falling further, to 1.81 by 8th Aug. It may or may not do but the only argument I can see for the £ improving is that it was once much higher.
The UK government is, successfully, winning the devaluation race to the bottom and, unless a huge oilfield is discovered in the North sea or they are forced to increase rates dramatically they'll probably stay in the lead. And imagine what would happen if the present government falls apart and there's a chance of NuLabour getting in !!

So, perhaps open accounts in several different currencies rather than gamble on the UK£ recovering anytime soon?

[HelenH77]

Ian - I live in hope that the exchange rate improves. If it doesn't 'oh well' I can't spend what I don't have.

[whakapapa]

As far as I am aware you have three years to sell your property and be exempt of CGT in the UK provided it was your main residence. You are exempt from paying any tax in NZ on any rental income you make from that house if you decided to rent it out for 4 years. The only income you would pay NZ tax on (from the UK) is actual earnings, not interest on money or rental income. I am fairly sure you can request the UK bank you are with mark you as non domiciled and therefore the bank don't take UK tax from any interest you earn. I've seen ppl recommend a company called broadbase international on here though if you need specialist advice. Not used them myself but if there seem to have been a few that have and found them helpful.

[norma]

I am fairly sure you can request the UK bank you are with mark you as non domiciled and therefore the bank don't take UK tax from any interest you earn.

The last time I looked into this there were only a couple of banks that would do it with a registered overseas address. HMRC should be able to advise you on which banks currently offer this.

You will only pay UK tax on the interest earned in the UK if you exceed the personal allowance, which is currently £7,475 for under 65s. If they are joint assets, that's £14,950 worth of interest before you need to pay tax. However, the tax will be deducted at source by most banks, so you will need to complete a UK tax return to claim the refund.

If you are expecting to earn more interest than your personal allowance (or if you don't want tax deducting at source), then it might be worth considering an offshore savings account in somewhere like the Isle of Man. www.moneyfacts.co.uk lists the latest interest rates for offshore accounts. Interest is paid tax free for non-EU residents.