How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4949
Type Your Tax Question Here...
bigduckontax is online now

Liability to UK tax

This answer was rated:

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

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.
bigduckontax and other Tax Specialists are ready to help you
Thank you for your support.