[b&k]

Hi All,

I've got a current account and savings account in NZ left over from my year over there. It's got some money in it but as we were planning to emigrate next year, I've decided to keep it open and earn interest on it as NZ interest rates are higher than in the UK. I am happy to sit out exchange rate fluctuations as I don't need that money at any specific point.

Do you pay income tax on savings interest at source in NZ? I.e. do you recieve net interest as you do in the UK (if you're a basic rate taxpayer)? If not, what's my tax status regarding this money in both the UK and NZ?

[jubjub]

Dont know about the tax status but check out the IRD website http://www.ird.govt.nz/yoursituation-nonres/ that should help..

But tax on interest is deducted by the bank.. so you see net interest in your account.

If you dont have an IRD no then get one, or they will take the 39% top whack off you, if you have a number and the bank are aware of it, then I think you should only pay 19% unless you have a lot of money in that account.

[wiki]

I've had a NZ bank account with a sizeable chunk of cash in ever since I've been in the UK - nearly 10 years. I don't pay any tax on that interest.

Contact your bank and ask it to move you onto non-resident tax status. You need to supply proof of your non-NZ address to make this happen.

[Super_BQ]

Non resident bank accounts do indeed pay tax. Current NRW is 15% IF you're resident in aother country that has a tax treaty with NZ.

If you dont have an IRD no then get one, or they will take the 39% top whack off you, if you have a number and the bank are aware of it, then I think you should only pay 19% unless you have a lot of money in that account.

Supplying an IRD # to the bank just makes it more convenient for IRD to keep tabs on your bank account (and can see all the account transactions).

When you leave, make sure you change the bank account to a non-resident status. With an IRD # or not, 15% with-holding is better than 19% and above.

Does the interest earned on a NZ bank account have to be declared on your UK tax return? If it's a tax treatied nation, you're suppose to declare the bank income in NZ on the UK tax return.

BQ

[Paul]

Does the interest earned on a NZ bank account have to be declared on your UK tax return? If it's a tax treatied nation, you're suppose to declare the bank income in NZ on the UK tax return.

BQ

Yes you are taxed as a Uk resident on your worldwide income. You would of course get relief for tax already paid elsewhere