[leachio]

:p Hi all,

Had a bit of advice from a relative, suggested we put the profit from our UK house sale into an off shore account until we need it for a deposit in NZ. Can anyone give me an idiots guide to off shore banking, I have no clue! I have limited knowledge on banking but if you need ur leg bandaging I can assist!!!! We haven't sold the house yet, going on market start of Jan, but we anticipate having between £15-£20,000 for ourselves.

Thank you and very merry xmas whether its a hot one or a cold one!

Amanda, Dan, Jack & Ella Maud xx

[Trigirl]

did this relative mention why it would be a good idea? you won't be paying tax on it in the uk anyway?

[leachio]

Hi Mandy, I see from ur blog that all seems well!

She never went into detail, perhaps she assumed I was familiar with the concept. Have u any helpfull advice re where to keep our money till we need it, I suspect if we transfer it to a nz bank we will dip into it until it's gone!

Amanda x

[Trigirl]

all is very well thanks!

i think most people assume offshore banking is tax free which is mostly not the case. if you keep your house proceeds in a uk bank it will be subject to uk tax - but it will be less than your tax free allowance so will be effectively tax free. you wont be subject to NZ tax on it as it is covered by the new migrants exemption for 4 years after you arrive.

we keep ours with nationwide - only pain with them is that they automatically deduct tax at source (most banks you can ask not to do that) so we will have to claim it back via our tax returns.