Living in NZ & investing in the UK

scoodenbuzz

Hi Folks,
Just wanted some advice on investing my money (£150,000-£200,000) whilst i move to New Zealand for around 3 yrs.
1. Would it be better to transfer my money over there or keep it in the UK for our return? I am concious that their interest rate is around 7.5% but there is a potential loss within the transfer of several thousand and, that's through a professional company such as HIFX. given that the NZ $ is weak against the £

2.Any advice on 'safe' investments for the UK is gratefully received?

3. Would I pay tax on my savings in the UK if I was a NZ resident?

Hope you can help me

Thanks

Cook_County

If you are in full time employment in NZ then you will be non-UK resident from the day of departure up to the day you return.

However interest is taxable in the UK if credited at any point during the tax year that you leave or the one when you return.

Therefore you really must put the money offshore, eg Channel Islands od Isle of Man, so that you can close the account at least the day before you return and avoid UK income tax entirely.

You may well find that there is tax on the interest in NZ however and you should take advice on this point.

scoodenbuzz

That's good advice, just to get it straight, If we leave money here, then when we return, we would be taxed on the savings from the day we return onwards or would it be from the whole period away?
Any advice on offshore accounts? how, where & when?

Cook_County

If you leave money here you are taxed on interest credited from 6 April of that tax year up to the date that you return. If it is offshore then by closing the account at least the day before you get back you pay no tax on that interest.

Where and how is your choice...I would choose a branch of a well-known UK high street bank or building society for safety reasons since I wouldn't want to lose my money. You should be able to get competive rates of interest at the levels you are talking about.