Ceasing to become a NZ Resident for Tax Purposes

[ian5708]

Hi,

Hopefully someone can give me some accurate information.

I am a British Citizen with NZ PR and I've been a Resident in NZ for tax purposes for the past 8 years.

On 4 April, 2016 I left NZ and returned to the UK as I was forced to give up the job I have loved due to injury. I rented in NZ and no longer have a place of abode, I have never owned a property in NZ and I don't have any business interests in NZ. I continue to have a rental property in the UK and I might return to NZ to live again at some point in the future, but not this financial year.

I have paid tax on my UK property to NZ IRD for the past 4 years

I understand that to no longer be a Resident for tax purposes in NZ, I will have to be out of NZ for at least 325 days in the previous 12 months.

My question is, if I was to be out of NZ for 325 days from 4 April 2016 and assuming that I meet all the Non Resident criteria as set out by IRD, would I become a non resident for tax purposes in NZ from the date I actually left NZ (4 April 2016) or from once I have been out of NZ for 325 days since I left?

I ask this as I need to know whether I will still be liable to pay tax (provisional tax) on my UK rental property income and also RWT on my bank savings interest during the 2016 tax year from April 2016 up to the 325 day?

I know that when I first arrived in NZ, once I was in NZ for more than 183 days, I was deemed a Resident for tax purposes from the date I actually entered. So do I stop being a resident for tax purposes from the date I left if I'm out for 325+ days?

Kind regards

Ian

[Jaq1978]

Hi,

Hopefully someone can give me some accurate information.

I am a British Citizen with NZ PR and I've been a Resident in NZ for tax purposes for the past 8 years.

On 4 April, 2016 I left NZ and returned to the UK as I was forced to give up the job I have loved due to injury. I rented in NZ and no longer have a place of abode, I have never owned a property in NZ and I don't have any business interests in NZ. I continue to have a rental property in the UK and I might return to NZ to live again at some point in the future, but not this financial year.

I have paid tax on my UK property to NZ IRD for the past 4 years

I understand that to no longer be a Resident for tax purposes in NZ, I will have to be out of NZ for at least 325 days in the previous 12 months.

My question is, if I was to be out of NZ for 325 days from 4 April 2016 and assuming that I meet all the Non Resident criteria as set out by IRD, would I become a non resident for tax purposes in NZ from the date I actually left NZ (4 April 2016) or from once I have been out of NZ for 325 days since I left?

I ask this as I need to know whether I will still be liable to pay tax (provisional tax) on my UK rental property income and also RWT on my bank savings interest during the 2016 tax year from April 2016 up to the 325 day?

I know that when I first arrived in NZ, once I was in NZ for more than 183 days, I was deemed a Resident for tax purposes from the date I actually entered. So do I stop being a resident for tax purposes from the date I left if I'm out for 325+ days?

Kind regards

Ian

Hi Ian,

I don't know the answer, but you could try an email to HMRC. They have a department I think that deals with this sort of query. If they regard you as now being liable to pay tax to them, I guess that would be your answer! I would be interested to know how you get on?

Regards

Jaq