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  1. #1
    Join Date
    Jun 2008
    Posts
    112

    Default Moving to the UK - Tax Implications with LTC..

    Hi Guys,

    I have been working in the UK for the last 10 months. I left NZ in Jan last year and traveled for a few months before settling down in London.

    My situation: LAQC holding 1 property that is CF Neutral at the moment. I plan to transfer it to a LTC (im currently back in the country on holiday and am looking at the paperwork at present). Director and 100% shareholder. Purchased in 2009.

    My question is, do i need to become a Non resident? What are the tax implications of staying a resident or becoming a non-resident for tax purposes? I plan to be in the UK for the next few years at this stage. Can the director and shareholder be a non-resident?

    Is an LTC the best way forward for me? I havent claimed a huge amount of depreciation over the last few years, but dont want to trigger depreciation recovered if i dont have to, hence the reason of transitioning to LTC.

    Mortgage is with the BNZ, if i transfer to LTC, do i need to change any of the mortgage docs, based on a new structure?

    Any help on this will be greatly appreciated.

    Cheers,

    Tom

  2. #2
    Join Date
    Aug 2010
    Posts
    2,630

    Default

    As you've been in UK for 10 months, you're already a tax resident of Britain.

  3. #3
    Join Date
    Jan 2004
    Location
    Whangarei
    Posts
    5,867

    Default

    If you HAD an LAQC it will have already changed to a QC at the deadline in October

  4. #4
    Join Date
    Jun 2008
    Posts
    112

    Default

    Thanks,
    So is it too late to convert to a LTC now Drelly?
    Yes i am a tax resident of the UK, im just unsure if that means i have to become a non-resident here in NZ as well, or can i be both?
    Cheers

  5. #5
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,841

    Default

    You can be a tax resident of both and probably are....but NZ and UK have a DTA

    http://taxpolicy.ird.govt.nz/tax-treaties

    Cheers
    Spaceman

  6. #6
    Join Date
    Jun 2004
    Posts
    10,642

    Default

    Quote Originally Posted by FrozenWaves View Post
    Thanks,
    So is it too late to convert to a LTC now Drelly?
    I believe you can have another shot next financial year for a few months but for this financial year you are a QC.

  7. #7
    Join Date
    Jun 2008
    Posts
    112

    Default

    OK, so if im a tax resident of both countries, do i have to declare my UK income in my NZ company/property returns?
    Thanks again, greatly appreciated.

  8. #8
    Join Date
    Mar 2005
    Location
    UK
    Posts
    33

    Default

    Quote Originally Posted by FrozenWaves View Post
    do i have to declare my UK income in my NZ company/property returns?.
    I'm no accountant, but resident in UK and non-resident in NZ, where I have rentals in my own name. I'm not required to state my UK income on my 'non-resident' NZ tax return.

    So my answer is, not if you're 'officially' non-resident in NZ

  9. #9
    Join Date
    Feb 2004
    Location
    Wellington
    Posts
    2,841

    Default

    ^....what he said...but also...because there is a DTA it doesn't matter even if you aren't a non-resident, you'll declare it but won't get taxed twice

    Cheers
    Spaceman

  10. #10
    Join Date
    Jun 2008
    Posts
    112

    Default

    Thanks Guys,

    Not that keen to pay double tax. Looks like I will stay a resident of both, fill out my return as a QC this year and then next year switch over to a LTC structure.

    Thanks again for all your wisdom!
    Last edited by FrozenWaves; 27-02-2012 at 10:57 AM.


 

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