 Martin Riley of Sterling Tax Services (our preferred tax services provider) suggests that NZ-bound UK emigrants should bear in mind the following points:
01Make sure that HMRC know that you have left the UK – complete Form P85 before or very soon after leaving the UK. 02Obtain an IRD number as soon as you arrive in New Zealand. This will avoid having to pay tax at higher rates simply because you don’t have an IRD number. Whilst any such overpayment can always be recovered at a later date this can just create unnecessary hassle. 03If you are an employee leaving the UK part way through a tax year then it is likely that you will be due a repayment for that year. Be sure to claim it by completing a self assessment form or a repayment claim form R43 (available on the HMRC website ). 04Don’t feel that you must sell all your UK assets. It may be more tax efficient to retain UK income producing assets as there is a 4 year temporary exemption from New Zealand tax for most overseas income of new immigrants . 05If you have UK stocks and shares then consider holding onto these – these can be subject to favourable tax treatment beyond the 4 year temporary exemption referred to above. 06If you are renting out a UK property then your property manager will be obliged to deduct 22% tax at source – unless you join the Non-Residents Landlords Scheme. This will allow you to receive rental income without deduction of tax – but you will need to complete a self-assessment tax return each year to ensure that any tax that might be owing is paid. 07If you are renting out a UK property which is subject to a mortgage then after the first 4 years in New Zealand you may be subject to tax on the mortgage interest that you are paying. 08If you continue to contribute to UK personal pensions you will run the risk of the fund income becoming taxable in New Zealand. 09If you are arriving in New Zealand with substantial assets then you should consider setting up a trust – possibly before you arrive in New Zealand. 10Don’t leave to UK just to escape the Taxman – there’s a Taxman here in New Zealand and the tax burden in New Zealand is actually slightly higher than in the UK – even though there is no capital gains tax and the top rate of income tax is marginally lower at 39%. If your financial affairs are reasonably straightforward then you may be able to deal with HMRC and IRD yourself but there is always a lot to sort out when moving to another country. Sterling Tax Services can help to take away some of the stress and make things a lot easier by dealing with your tax affairs for you. If your financial affairs are more complex then it is essential that you seek professional advice – preferably before you leave the UK.
These points are generic points and Sterling Tax Services accepts no responsibility or liability towards any person relaying on the information set out here. You should always obtain specific advice based on the full facts and which takes into account both UK and New Zealand tax law.
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On Your Way 
