sharetrader
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  1. #1
    Member
    Join Date
    Jul 2013
    Posts
    87

    Default Question about tax obligation on UK-based ETF fund

    Hi,

    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?


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


    Cheers!
    "The market can stay irrational longer than you can stay solvent." – John Maynard Keynes

  2. #2
    Guru
    Join Date
    Feb 2005
    Location
    Auckland, , New Zealand.
    Posts
    3,227

    Default

    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.

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