View Full Version : Question about tax obligation on UK-based ETF fund

29-06-2016, 05:33 PM

Looking at putting some money into a UK-based ETF while the exchange rate is in our favour and have a couple of questions about tax I'd like to confirm. Taking into account the usual disclaimer of confirming facts with an accountant, can anyone with funds overseas confirm whether the following are true?

Interest/Dividend earnings up to 11K are tax-free in the UK, including for non-residents.
Overseas interest earnings totalling under 50K NZD in a tax year will not attract FIF tax from IRD.
The interest earnings are liable for RWT tax at the PIE rate.


29-06-2016, 09:15 PM
My guess is that in...

1. You will still be liable to income tax here in NZ. You would just be exempt from tax liability to the UK.
2. Remember the $50,000 is the amount invested not $50,000 of income.
3. PIE rates are a NZ thing so unless they are NZ based funds investing in the UK then PIE rates would not apply.

As I say, only a guess.