[hkj]

Hi

We're in the final stages of moving out to NZ, but I've got a couple of queries that I can't seem to find the answers to at the moment. Firstly, if we buy in NZ, what are the hidden costs? In the UK, there are lawyers fees, searches, surveys, and stamp duty. Again when we sell, what are the costs - is it just estate agents fees as in the UK?

Secondly, when someone we knoew moved out a few years ago, they said that they had to bring their money from selling their house in the UK into NZ within a certain time frame, otherwise they would be liable to pay a tax on it when they brought it in. I can't find anything about this - does anyone know?

Many thanks for your help.

Helen

[Oregonkiwi]

info on house purchase costs:
http://www.hsbc.co.nz/nz/personal/products/homeloan/useful_info.htm

and temporary tax exemption for new migrants:
http://www.ird.govt.nz/yoursituation-nonres/move-nz/temp-tax-empt-foreign-inc.html

[nickydwuk]

Those sites were really helpful - thanks:nice1

[willowshouse]

Secondly, when someone we knoew moved out a few years ago, they said that they had to bring their money from selling their house in the UK into NZ within a certain time frame, otherwise they would be liable to pay a tax on it when they brought it in. I can't find anything about this - does anyone know?



Is that right? That would mean if you let out your UK property and sold it after 5 years and brought the money to NZ then you would pay tax on it? That doesn't sound right to me.

Is is not just that after the 49 month exemption period you would then be liable to pay NZ tax on the interest you earned on UK savings (if you sold your property and kept the money in UK) .. OR on your UK rental income (if you held onto it)?

Where's Avalon when you need her!!

Dawn

[Ana&Steve]

Where's Avalon when you need her!!

DawnI second that! I really miss her and her advice and wisdom...if we started a petition, do you think she'd come back?:o (only half joking)
Ana
/sorry, no help on your question...

[Trigirl]

you don't have to pay tax to bring money into the country. as willowshouse says once your exemption is up you have to pay NZ tax on interest/rental income in the UK - but you can deduct any UK tax you have already paid.

buying a house - you pay lawyers fees (our bank refunded most of ours as part of the mortgage deal - thats pretty common), you pay the council for a LIM (a type of property records search), you would probably want to pay for a buildings inspection. thats basically it. there's no stamp duty.

selling - estate agents fees can be huge. again you'd have to pay lawyers fees. i think thats it though (but we haven't sold here yet so i'm not 100% sure)

[jaycee]

they said that they had to bring their money from selling their house in the UK into NZ within a certain time frame, otherwise they would be liable to pay a tax on it
That might also refer to Capital Gains tax on profit made from the property (payable in the UK) rather than a New Zealand tax on imported money.

There are rules about how long you have to be out of the UK to be exempt from CGT, and also one concerning the length of time the property has not been your primary residence before you finally sell up, which affects your liability. It's a complex subject and if it's likely to affect you it might be a good idea to seek professional advice.

[willowshouse]

You'd only pay Capital Gains Tax in the UK if your returned to the UK within 5 years of selling it .. not planning to do that so :D