Hello Group,
I am organising my move from UK to Christchurch in October 2006, my visa runs out November 2006. I was just about coping with sorting out the move, until being landed in the middle of a huge family crisis which started a week or so ago.
To sort out the crisis, looks like I will have to transfer a large amount of cash to other family member(s).
I am very concerned if I will be subject to gift tax on the transfer, although the transfer will be made before I move to New Zealand. If this is the case, I will not be able to move to Christchurch. Here are the facts on the transfer:
o My permanent home is currently in UK
o Transfer will be made before I move to Christchurch, after which my permanent home will be in New Zealand
o I currently have no home or monies in New Zealand
o Transfer will be from moneys held in Isle of Mann to UK
o I expect I will be classed as having an "enduring relationship" with New Zealand and subject to the double taxation agreement for current tax year.
As far as I understand, I will not have to pay gift tax as I will not have a permanent home in New Zealand until after the transfer, my permanent home for the transfer is in UK, and all monies are outside New Zealand. I have read through the gift tax guide on New Zealand Inland Revenue site, it is not totally clear in this situation.
Any advice would be greatly appreciated, but please be clear if you have made any assumptions, or not totally sure about anything.
Any recomendations for a good tax advisor to help me sort through this would also be appreciated.
Regards,
Paul.