I’m a Uk resident but have savings in New Zealand and want to bring back to the uk

My father lived in NZ for a number of years and had savings he gifted me while I was on holiday there and is in an NZ account in my name. I am from the uk and live in the uk and I want to bring the money over but I’m worried about tax does anyone have any advice or can point me in the right direction. :)

Comments

  • Assuming you are UK-domiciled (very likely since you say you are from the UK, live in the UK, and it doesn't sound like your father was originally from NZ), it shouldn't really make any difference - you owe UK tax on the interest received from your savings worldwide.

    So any interest from your NZ account is taxable in the UK now, and it will still be taxable if you move the money back to the UK.

    Of course the Personal Savings Allowance may mean you don't actually pay tax on this - again that's no different whether the money is in NZ or the UK.
  • pjcox2005
    pjcox2005 Posts: 1,015 Forumite
    Name Dropper First Anniversary Combo Breaker First Post
    Just to really make the point clear, the act of moving the money from New Zealand to the UK doesn't trigger any sort of "gain" or tax transaction.


    Nor is there any tax for you on the original gift.


    As mentioned though, any income you've earned on that money should have been taxed as UK resident & domiciled individuals are subject to tax on their worldwide income and gains.
  • Actually, looking a bit further, moving the money from NZ to the UK may be beneficial, because you'll no longer be paying NZ Non-Resident Withholding Tax on the interest.
  • Thanks that helps so would I need to declare this in a self assessment?
  • Matt2016 wrote: »
    Thanks that helps so would I need to declare this in a self assessment?

    1) For any tax year that interest has been earned in NZ, it looks like yes you would, even if the amount is small enough you wouldn't pay tax. (You might want to call HMRC to check. But as far as I can see you're exempted from filing a return if your only foreign income is dividends up to £300; whereas you need to file a return if you have even £1 of interest.)

    link

    2) For tax years when the only interest comes from the UK, i.e. after you've moved the money back, the interest alone won't force you to complete a Self Assessment unless your total interest income is over £10,000. (Nice problem to have :))
    HMRC wrote:
    If you’re not employed, do not get a pension or do not complete Self-Assessment, your bank or building society will tell HMRC how much interest you received at the end of the year. HMRC will tell you if you need to pay tax and how to pay it.

    link
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