Taxation of non resident trusts

[Monty]

I currently have a New Zealand discretionary trust, with a New Zealand company as trustee. I am planning to move to the UK and want to know the tax consequences of having a non-resident trust.

In particular:
Will the trust be subject to UK income or capital gains tax?

Will cash gifted to the trust while I am a UK resident be taxed in the UK?

If I receive income or capital distributions from the trust will they be taxed in the UK?

[Ian McTernan CTA]

You need to seek full professional advice on this before you arrive- it may not be a good idea to touch the trust whilst in the UK.

Ian McTernan CTA
McTernan Associates Ltd
Chartered Tax Advisers
ian@imcternan.com

[Taxbar]

Dear Monty,

If you are a New Zealand Domiciled individual and the trust was set up by you or an indiviudal of similar status, then the trust income and gains are not subject to UK tax unless remitted here.

That is on the assumption that you take steps to retain your New Zealand Domicile.

With expert tax planning any income and gains can be brought into the UK tax free.

You need to arrange the trusts and your affairs carefully before arriving in the UK.

I specialise in NON-DOM tax planning and can advise you.

Daniel M Feingold
Barrister-at-law (NP)
Strategic Tax Planning
International & UK Tax Consultants
 
Treen House 72 Park Road,
Prestwich Manchester M25 OFA

E-mail:sedrate@easynet.co.uk