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bigduckontax, Accountant
Category: Tax
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Liability to UK tax

Customer Question

My wife and I are UK residents. We have recently sold our holiday property in New Zealand and are looking to transfer the proceeds to the UK. Please advise us of our liability to UK tax.  We are both pensioners.  The holiday property was in my wife's name and she is a non tax payer in the UK.r

Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

There are no tax implications in transferring the capital sum to the UK although the move may attract attention as a counter to money laundering. Adequate documentary evidence will enable you to head that one off, if necessary.

The sale of your NZ holiday property will almost certainly create a Capital Gains Tax (CGT) liability in the UK. However, if a similar situation arises under NZ taxation legislation then any tax paid in NZ will be allowed as a tax credit against any UK tax liability under the Double Taxation Agreement between the UK and NZ.

Sorry to have to impart gloomy news. I hope I have helped though.
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Expert:  bigduckontax replied 3 years ago.
Thank you for your support.

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