The desirability of pre migration Trust 25 Oct 2006
Ross Holmes Trusts Limited
- Making migration work: lessons from New Zealand Migration
- Melissa Taylor Registered nurse from San Diego enjoys her job by the beach Migration
- BYE BYE CULTURAL CRINGE: EXPAT KIWIS CONFIDENT AND CONNECTED WITH HOME Migration
- Finding a job in New Zealand Migration
- The Skilled Migrant Category selection Migration
- The Skilled Migrant Category Migration
- Annual permanent and long-term arrivals up 24 per cent on year ago Living
- Now what have I forgotten? Migration
- Homeward bound: The final countdown Migration
- Wellington – live, work and play Migration
PRE MIGRATION TRUST: For many reasons UK citizens and returning Kiwis are considering a change of life style and heading down to New Zealand for that change. UK citizens have a once only opportunity to gift assets at once to a Trust before you become resident and domiciled in New Zealand.
This opportunity will be lost when you become domiciled in New Zealand.
There is no gift duty in the United Kingdom. Over the last few months use of trusts in the UK has been seriously curtailed in that any personal assets gifted to a trust valued over the nil rate bank of £285,000 per person (£570,000 per couple) will be subject to a lifetime inheritance tax charge of 20% with ongoing periodic charges and exit charges levied on distributions made or imposed at the 10 year anniversary of the trust.
New Zealand does not have these problems it has no inheritance tax or estate duty, stamp duty or land development tax.
The rich accept that trusts are normal. They use trusts as their cornerstone investment ownership vehicle. It is far safer to adopt the methods which the wealthy have successfully used for centuries. By using a trust in New Zealand you can maximise your chances of financial success and security.
New Zealand tax incentives for new migrants
In April 2006 the New Zealand Government amended the 2004 Income Tax Act to provide a new four year exemption on foreign sourced income for new migrants to New Zealand and returning New Zealanders who have been non-resident for tax purposes for 10 years or longer. These persons are now known as "transitional residents". The exemption has been extended to Trusts where a New Zealand Settlor is a transitional resident.
These new rules will provide an exemption from Income Tax to transitional residents for income derived from any country other than New Zealand in the form of dividends, interest, rents and an exemption from the application of the Foreign Investment Fund regime.
The exemption will last for a period of 48 months commencing from the first day of the month in which the individual acquires a "Permanent Place of Abode" in New Zealand". Judicial decisions have held that a "Permanent Place of Abode" is a test considering the strength of the relationship an individual has with New Zealand.
Assets placed into a New Zealand Trust below the nil band for UK Inheritance Tax Purposes will not attract New Zealand Income Tax providing the income is not generated in New Zealand and will not attract the UK 20% Lifetime Inheritance Tax.
More information on New Zealand trusts can be obtained from www.rossholmes.co.nz.
Before considering the move or return to New Zealand we highly recommend that you seek professional advice pertaining to your personal circumstances.
2 Mar 2015 News
There's no excuse for being overweight, you can judge kids by their names and it's okay to miss their birthday - that's the opinion of... more
2 Mar 2015 Business News
Article - BusinessDesk Govt resisting pressure to inject more cash into Solid Energy By Pattrick Smellie March 2... more
2 Mar 2015 Business News
By Paul McBeth March 2 (BusinessDesk) - KiwiRail, the unprofitable government-owned rail operator, reported a 6 percent drop in... more
2 Mar 2015 Food & Wine
New Zealand may have thrashed England on the cricket pitch, but the two countries went head to head with a strong team of sparkling... more
2 Mar 2015 Entertainment
A landmark release for Anzac Day 2015 and the 100th anniversary of the Gallipoli campaign. Based on real people and events, the... more
2 Mar 2015 Property
Pressure on home-buyers increases the number of long-term renters. Soaring house prices and tighter lending rules mean... more
2 Mar 2015 Migration
Prime Minister John Key says he is not aware of any suspected war criminals from the former Yugoslavia in New Zealand. The claim that... more
2 Mar 2015 Travel & Tourism
Air New Zealand is promising more discounted fares as it adds hundreds of thousands of extra seats to its network where travel agents... more
2 Mar 2015 Cycling
Jason McCarty notched up his first win at the Burkes Cycles Speed League Summer Series Round 5, held at the Wellington... more
2 Mar 2015 Opinion
There had been a fortnight of fevered buildup. Yet here we are in the aftermath of the February 28 showdown between the new Syriza... more
27 Feb 2015 Opinion
Gordon Campbell on the wage hike for MPs, and Paul Robeson Hard to tell what is more infuriating. Is it the 5.3% increase on... more
20 Feb 2015 Appointments
Foreign Minister Murray McCully has named diplomat Billie Moore as New Zealand’s new Consul-General in Sydney. "Ms Moore will... more
2 Mar 2015 Recruitment
Bringing employers face-to-face with future workforce creates positive labour market outcomes, writes Mark Gillard, director of the... more