[Carey]

We're trying to decide what to do with the money from our house sale and my non-financial mind is befuddled by too much info.

What did people do with their money? Put in ordinary current account or online account while waiting to exchange it or some of it to $? We'll be renting intiially in NZ so will need some money transferred as I'll be on very low wage for first year at least.

Has anyone with a family found it better to accept the 4 yr tax exemption rather than receiving family credits?

I assume there are no easy answers, everyone's situation is different but I really don't know how to decide what's best and where to find straight forward (preferably free), advice.

Also have people left PEP's or ISA's in the UK? Is that 'allowed' if you're not resident here any more?

[Mickstim]

Hi Carey

We don't have kids so would not receive family tax credits, so have opened an offshore account with Alliance & Leicester at 6.3% tax free. We plan to leave the bulk of the money from our house sale there until the exchange rate increases or we decide to buy anyway. We figured we are better taking that than a higher rate that is taxed, but getting a poor exchange rate.

We are keeping our Lloyds TSB current account and a savings account with them and I have registered with them for 'gross interest' on the savings account. We have also opened an ASB account to transfer funds when we go next month.

We really aren't sure that we are doing the best things possible but trying to work your way through the financial maze is hell on the brain and nerves!

Bx

[stevied20]

Has anyone with a family found it better to accept the 4 yr tax exemption rather than receiving family credits?


Hi Carey,

Can you explain what you mean ? We have a family and are unsure what this means?

We also sell our house tomorrow and will have to invest the money, initially it will be going to an online account with the halifax, but with the poor excahnge rate then we need to look at putting it somewhere until the rate is favourable........we leave in 4 months!!

We have opened an ASB account and are ready for transferring money.
What are the implications of keeping your Lloyds current accoun t open?
I also have the same account

Steve

[marcia]

We used the ASB to move our money - we still have a Lloyds account which i can manage online (we still have a life insurance premium which comes out ofthis monthly - the NZ insurance we have been offered can't compare with what we have.) What we did was make my dad able to sign on the account and he has a cheque book and also the statements go direct to him. We have still had tax to pay in Uk with Kev being self employed it can take ages for the final accounts to come through, so dad has dealt with this. Once our house sale went though - (again my parents dealt with this for us, we left them with power of attorney) - dad sorted out a chaps payemnt to the ASB in london -and we dealt with them via phone and transferrred the funds over to pay for our house here (the rate was much better then 2.73)

When its birthdays and christmas friends and family in the uk give dad money and he pays it into the lloyds account and i either give the kids the equivalent in NZ dollars from our account here, or spend that amount on presents, then anyone i need to pay in the uk i can either do it online or dad sends a cheque.

HTH :nice1

[dharder]

Has anyone with a family found it better to accept the 4 yr tax exemption rather than receiving family credits?

That's a tricky one, but in our case, it makes more sense not to claim the exemption and to receive family credit.

This will really depend on your income, but I believe you don't have to decide right away. We looked at our income first, and then decided what made more sense.

We've left the money in an offshore account, so will be taxed on it only here.

Daniela

[Carey]

Stevied20, if you have PR you can claim family tax credits as soon as you arrive but if you choose to have 4 yrs tax exemption then you cannot claim these. Think it's probably better to get the tax credits but you'll need to look at your particular figures.

[Carey]

Another question:

Is it possible to transfer a lump sum from an offshore account to a NZ bank and keep it in sterling and then opt to exchange it into NZ $ when the rate is favourable? Presumedly not or everyone would be doing it this way!?!

[Chiba]

Another question:

Is it possible to transfer a lump sum from an offshore account to a NZ bank and keep it in sterling and then opt to exchange it into NZ $ when the rate is favourable? Presumedly not or everyone would be doing it this way!?!

You can keep Sterling in ASB, for example, but the interest rate's low and you'll presumably be taxed on the interest. Current interest rates are:

5,000 to 30,000 3.25% p.a.
30,000 to 150,000 3.65% p.a.
150,000+ 3.85% p.a.