[Rich]

Does anyone have experience of renting their house in the UK out for a couple of years whilst they try NZ or find where they really want to live in NZ?

We were wondering how tax works on the income from renting the house in the UK? And how do you get any 'profit' from the rent to NZ?

Thanks
Richard

[Pip]

Hi Richard,
Sorry - can't help, but am very interested in any answers that you do get. We are also in the same position and plan to rent out our flat here to start with, but all I can contribute so far, is that you will probably need to notify your mortgage provider (unless you have a buy to let mortgage already) and will also need to get certain things checked e.g gas boilers etc.. As I find out more info - I'll keep you posted.

Cheers

Philippa

[KerryS]

I rent out my house in London via an agent. They ensure that any repairs are carried out and just deduct the costs from the rental income. The rent is then deposited into my UK bank account. My mortgage payments come out of here, and the surplus is available for me to draw upon at any time as I have a cashpoint card for the account which I can use in NZ.
I should take the money out and get decent interest on it here in NZ, but in reality it usually just sits in the UK account doing nothing...
I think you have 4 years before you need to pay tax on the income in NZ, but I just leave all that sort of stuff to my accountant to work out for me.

[Sam B]

I'm just about to move out of my house in Cornwall, I have a rental property lined up in NZ. I'm renting out my house here through an agent and using that money to fund the rental in NZ as I get more money here than I have to pay there if you see what I mean.. I have had to register as self employed with the Inland Revenue as they have informed me that I will be taxed in the UK for any property rental income here. Don't think I will have to pay tax in NZ as there is a double taxation agreement. Is there anything else you need to know?

[JandM]

I'd like to know the nuts and bolts of what DOES happen on this matter of income from a UK rental while living in NZ. What you said here, Sam, seems to make sense according to what I've been reading on various tax websites - but then there's Kerry's comment, 'I think you have 4 years before you need to pay tax on the income in NZ,' which I don't understand. Does anybody know any more detail?

Then there's the matter of our (UK teachers') pensions - apparently, we won't have to pay UK tax on them. But will we get taxed in NZ, and at what rate?

[chocolate cake]

Then there's the matter of our (UK teachers') pensions - apparently, we won't have to pay UK tax on them. But will we get taxed in NZ, and at what rate?

Would guess it would be normal NZ rates, which are as below with no personal alllowances,
Taxable income: Tax rate for every Tax rate for every $1 of taxable income (excluding & including ACC earners' levy)
up to $38,000 19.5 cents 20.8 cents
$38,001 to $60,000 inclusive 33 cents 34.3 cents
$60,001 and over 39 cents 40.3 cents

Re: double tax agreement, usually this means you pay the tax which is due in the country you are living, but are able to deduct from that due the tax you have paid on it in foriegn country

[JandM]

Thanks for that.