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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Double taxation agreement between UK and NZ. I work and pay tax on all my worldwide assets

Resolved Question:

Double taxation agreement between UK and NZ. I work and pay tax on all my worldwide assets in NZ, have children living in both countries, grandchildren in NZ, part ownership of houses in both countries with my wife, NZ state pension, continued part time work in NZ.
I will now be spending say 4 months of the year in the UK, the balance in NZ.
My understanding of the double taxation agreement is a layer of interests, where if there is a balance, the taxation de ion is based upon the centre of economic interest. Is this correct and how does one establish this with the UK Revenue
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you confirm that you are a New Zealand national please. Can you tell me what the purpose of your stay in the UK will be please. Will you be living in a property that you own?
Customer: replied 2 years ago.
The purpose of the UK stay is pleasure and I live in a property owned by my wife and self.
I obtained NZ citizenship some 15 years ago.
Expert:  TonyTax replied 2 years ago.
Thanks.

You say you got NZ citizenship 15 years ago. Does that mean you were born as a UK national?
Customer: replied 2 years ago.
Born UK, so UK domicile, but not tax resident for the past18 years until potentially now.
Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer. It will take a while so please bear with me.
Customer: replied 2 years ago.
Just for your information, the document that I am reading"UK/NZ DOUBLE TAXATION convention as amended by the protocols signed on 4 November 2003 ( minor mod in 2008 but not relevant to questions).
Article 4 covers the residence consideration.
Expert:  TonyTax replied 2 years ago.

Hi again.

You can write to HMRC, PAYE and Self Assessment, BX9 1 AS to have your tax status determined by HMRC in the UK and the relevant tax office in New Zealand. Your letter will be forwarded to the specialists who deal with international issues. Their address is here but I've been told not to write to them directly.

Look here for a basic guide on UK tax residency and here for more detailed guidance.

Looking at the overseas and UK tests, I don't think that you would be definitively assessed as UK resident or non-UK resident. In that case, the number of days you spend in the UK in a tax year are matched with the number of pre-defined ties you have to the UK. If you spend between 91 and 120 days in the UK in a full tax year, you will be UK resident if you have three or more ties to the UK. Otherwise, you will be non-UK resident.

Article 4 of the UK/New Zealand tax treaty covers here residence. If you are treated as both UK and New Zealand tax resident, then the tiebreaker comes into play. See paragraphs c to f inclusive. I would say that your economic interests would have you as primarily resident in New Zealand.

I hope this helps but let me know if you have any further questions.

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