[Milliemoo]

Hi,

Sorry to be a bore, but it's not something I've seen talked about much on varios forums. I'm in a bit of a tiz with our finances and what will make financial sence for the future (in NZ).

We have an endowment policy which still has 17 years to go and should (fingers crossed) pay out approx £50k. Should we leave enough money in a UK bank account to cover the month d/d for the next 17 years of payments? Are we allowd to do this ? Are there any tax implications when it matures ?

Am I right in saying that if we keep a UK bank account that we will be 'non-residents' for tax purposes and as such will not pay tax on the interest? (we'll only be visiting the UK for say 2 weeks each year/evry other year)

We have a stocks & shares ISA. Is this worth keeping on as a non-ISA account ? Is this possible?

What about UK state pensions ? Are we entitled to anything for all the NI payments we've made? Is it possible to keep paying NI to ensure a pension / is there any point?

Sorry for all the questions. :oops: We will be seeing an IFA before we leave, just curious as to what other people have done/plan to do.

Milliemoo ;)

[Robert]

What a list!

You need to speak to an IFA about your endowment as whether you keep it or not will depend on which one you have. Remember that in 17 years the dollar/pound rate will probably be different from today and may be more or less favourable.

If you definitely want to stay in NZ forever then it is probably not worth paying NIC as anything you get from the UK will reduce your NZ pension. You will get a UK pension, but it will not rise when everyone elses does.
You can buy back pension entitlement in the UK for up to 7 years though so you could stop contributing when you come and if you go back within 7 years, all you need is to pay a large lump sum.
AFAIK ISAs are tax free for UK residents only, but do check with your provider.

Income from interest is liable to tax wherever it 'arises' With interest, there is a double tax agreement with NZ determining who gets the tax take. I beleive you could chose which country to pay tax in (the UK is best if your income from interest is less than about £8000 pa) but you should check with the IRD here in NZ. In any case, you should ask for your interest to be paid gross.

For further info. ask the contributions agency for their leaflet on overseas residence and the inland revenue for advice on double tax.

[Milliemoo]

I Robert,

Thanks for all the info.

Yes, endowments are a tricky one, but as you say you don't know what's going to happen in 17 years so I'm reluctant to cash in now (which I don't think is a good option). To continue to pay or not is what I've got to decide me thinks.

It's definately a job for an IFA. I've tried reading through the info on the IR website etc but I just get more and more confused :?

Thanks again


Milliemoo ;)