[Radders]

I will be in the fortunate position of earning a regular income from the UK while residing and working in NZ. I am concerned about getting taxed on my world wide income by both countries. I have heard that there is a dual tax agreement between the UK and NZ, and wondered if any one already over there can shed any light on what happens in this instance.

[veronica]

I understand that it works by NZ taking the difference on the tax. ie. if UK tax is 30% and NZ is 40% then NZ takes the 10% that is the difference. that is my understanding but there will be plenty of tax consultants who will be able to help. try phoning one.

[thegatehouse]

TAX TAX TAX............

If I get into NZ I will be drawing a UK military pension of @£11000.00

Anyone know iwhat the best options are?

[acisman]

I am retiring to NZ next year and while I will not get my UK State Pension for several years, I will be getting an occupational pension. The situation with tax is that I can have the pension paid into a UK bank account and pay tax in the UK, or I can have the pension paid directly into a NZ bank account and pay tax in NZ.

However if I opt to receive the pension in the UK, I will still be liable to NZ tax on the full amount and it is here that dual tax agreements come into play.

The situation is that while I will still pay 19.5% NZ tax on the entire pension, I will receive a credit/refund/allowance for the tax paid in the UK. Not 100% sure how this works, but as I will not be paying tax via a PAYE scheme, I believe I will have to make an annual tax return in NZ and produce evidence of the tax paid in the UK and then my tax bill be adjusted accordingly.

Of course in NZ there is no personnal allowance or 10% rate and by my calculations I will be paying far more tax in NZ on the same pension that in the UK. I have offset that with the fact the GST and other indirect taxes are a lot less in NZ. So all things being considered I do not thing I will be much worse off.

Hope this is of some help.


Dave