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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
    2,776

    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
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  6. #6
    Join Date
    Jun 2004
    Posts
    10,369

    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
    2,776

    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
    Delightfully in need of some Tender Loving Care
    Blessed are those who can give without remembering and take without forgetting
    Some things are not as they seem, nor are they otherwise

  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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