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taxadvisor.uk
taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 40 years experience as a qualified accountant (UK based Practitioner)
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I am a 77 year-old widower and British citizen. I returned

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I am a 77 year-old widower and British citizen. I returned to the UK in April having spent the past 40 years living in New Zealand. I currently receive NZ superannuation which will cease in October as I have been away from NZ for over six months. I should then be able to claim a UK pension. I also receive a pension from the RAF from my previous service. I expect to pay UK Income tax on these pensions for the year 2019/2020. I sold my NZ house in March and have invested the proceeds in Managed funds held in a Family Trust in NZ, of which I am both a Trustee and a Beneficiary. Profits from this are taxed in NZ. However, I do use these profits to supplement my UK income and intend eventually to use most of these savings to purchase a property in the UK or maybe in France. Would you please advise me of my tax obligations, particularly of what I need to declare regarding my life savings.
JA: Which tax year is this for?
Customer: Hi Pearl, 2019/2020.
JA: Anything else you want the Accountant to know before I connect you?
Customer: I don't think so.

Hello and welcome to JustAnswer. I am here to help you. I am reviewing your question and will respond to you shortly.
Many thanks

Thank you for your question.

Once you are a UK resident for tax purposes, you are taxed on your worldwide income and gains arising in the year.

Savings don't have to be declared but income received from the investments is taxable and reported on your tax return.

Furthermore, if you were to remit the savings from an overseas bank account to your UK bank account, you don't need to report them on your tax return. You should however alert your receiving bank to comply with anti-money laundering regulations.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Customer: replied 3 months ago.
I am still not quite clear as if those savings have already been subject to NZ tax at source why should I declare them and risk them being subjected to UK tax as well. If however I continue to have the proceeds from my savings paid into my NZ bank and use my credit card or a bank direct transfer for larger sums, do I still have to make a declaration ?

Thank you for your reply.

As stated earlier, savings don't have to be declared to the tax authories. Any income you are getting from the saved capital would be taxable in the UK. If this income is also taxed in NZ then you would claim foreign tax credit relief against UK tax for tax suffered in NZ under double taxation agreement between the two countries.

There is no requirement for declaration of money spent. I was merely saying you are remitting large sums into your UK based bank account you should alert your bank in the UK for compliance. You don't make any other declaration.

I hope this is helpful and answers your question.

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