UK Grandparents want to put UKP somewhere for NZ grandchild

[nellyt]

New grandparents (UK) are keen to put some money (UKP) somewhere for grandchild (born in NZ). Parents are British, been in NZ 3 years.

Is there any way they can do this in the UK into a UK account?

They want to officailly (from the UK tax man's point of view) put some money aside for them that the UK tax man will consider as no longer being in their estate.

and there is no rush to move the money over to NZD

[Tia Maria]

New grandparents (UK) are keen to put some money (UKP) somewhere for grandchild (born in NZ). Parents are British, been in NZ 3 years.

Is there any way they can do this in the UK into a UK account?

They want to officailly (from the UK tax man's point of view) put some money aside for them that the UK tax man will consider as no longer being in their estate.

and there is no rush to move the money over to NZD

Yes, my Mum opened an account for my son with the Halifax to do just that. This was a couple of years ago, so not sure if they still allow it.

One thing to keep in mind is that once the child earns interest, (or any income), they will need to apply fo an IRD number. For an NZ account any tax should then be automatically deducted. However as it's a UK account, you will need to fill out a tax form for your child, to notify the IRD of the overseas interest they are earning.

If that interest is over $200 (NZD) - (I think that's the right amount - but confirm that!), then they will need to pay tax on it as the NZ system is not as generous towards children as the UK system is, and it is considered overseas income.

With the exchange rate being what it is, that would mean about 100 GBP in interest, but if it goes up to 2.5, then it will be nearer 80 GBP in interest that would qualify for tax. They do ask you to calculate the exhange rate for when you received the interest.

I eventually brought the money over as I got sick of filling out lots of tax forms! But I'm sure lots of people 'forget' to mention it.......

Cheers

Tia

[nellyt]

...and your son was born in NZ ?

[Tia Maria]

...and your son was born in NZ ?

Yep.

Cheers

Tia

[Kiwi Mac]

New grandparents (UK) are keen to put some money (UKP) somewhere for grandchild (born in NZ). Parents are British, been in NZ 3 years.

Is there any way they can do this in the UK into a UK account?

They want to officailly (from the UK tax man's point of view) put some money aside for them that the UK tax man will consider as no longer being in their estate.

and there is no rush to move the money over to NZD

Monaco? Geneva? Channel Islands? Isle of Man?

Just take it out in cash and tell the taxman you spent it. Probably better to buy gold with it (coins or bullion) because by the time the wee one grows up fiat currency could be worthless...!

[mooncalf]

Monaco? Geneva? Channel Islands? Isle of Man?

Just take it out in cash and tell the taxman you spent it. Probably better to buy gold with it (coins or bullion) because by the time the wee one grows up fiat currency could be worthless...!

Love it! yeah 24 carat

[Kiwi Mac]

Love it! yeah 24 carat

Seriously. Bullion bars or coins are solid, touchable money anywhere anytime. Can't be quantitively eased, can't be changed to the Euro, can't be inflated by governments etc etc.

Doesn't rust or tarnish - so bury some in the garden in case of emergency!

[mooncalf]

Seriously. Bullion bars or coins are solid, touchable money anywhere anytime. Can't be quantitively eased, can't be changed to the Euro, can't be inflated by governments etc etc.

Doesn't rust or tarnish - so bury some in the garden in case of emergency!

Yeah but get a good safe cause if you get burglered..the insurance company say the gold has depreciated...go figure that...long story.

[JandM]

so bury some in the garden in case of emergency!

A branch of my family has one of those old legends about burying the valuables in a time of emergency, and/but the person who did it getting killed before he could tell anyone the hiding place. Family members (and anyone else who heard about it) have been looking, sporadically, for 300 + years!

Now, if I could find the gold, I might yet get in on an investor's visa...

[Kiwi Mac]

Yeah but get a good safe cause if you get burglered..the insurance company say the gold has depreciated...go figure that...long story.

Paint it black and store it in the shed! A friend of mine did that for years - he had GBP5000 worth on a bench amongst the cobwebs and rusty pain tins! No one would have guessed.

His wife found out and made him put it in the bank - which is pointless because if the balloon really does go up, it merely allows the State to appropriate your resources!