Dual UK / AUS nationality moving to Aus indefinitely

[67CooperS]

Hi,

 

We (wife and I) both hold dual nationality of Aus and UK and are soon to be packing things up in London and heading to Australia indefinitely. We have a few loose ends to close off and obviously want to be as tax efficient and informed as possible.

General (personal) tax

1. We have been working through our own limited company which will be shut down and the capital extracted via entrepreneurs relief. Having declared and paid all the tax in the UK to get the money out of the company, do i need to declare anything further in Aus?

 

2. Are there any timing issues with different tax years i need to be wary of in terms of commencing employment in Aus that would subject the entire amount plus new earnings to a higher rate of tax?

3. When do i submit my UK tax return (ie wait until year end or on departure)?

 

4. We also own a single property in the UK that we intend to keep and rent out. We are relocating to Aus so there are no delusions about it being our permanent residence, although we may move back at some point if all is not greener on the other side. The house is in joint names and will obviously be earning income for us in the UK. Do I;

- Pay tax on the income in the UK and that's the end of the story, but requires a UK tax return each year

- Declare the income in Aus in its entirety,or

- Declare only the net income after mortgage (interest component) and any management fees and other deductions are subtracted?

 

5. What deductions are permitted? ie repairs/maintenance etc? Do I need to consider UK or Aus taxation law for the deductions? I presume this depends whether the whole rental income is required to be declared in Aus or only the net income?

 

Thanks!

[starlight7]

End of the tax year here is June 30th. Wouldn't think your income in the UK is anything to do with Australia,pretty sure it would only come under British law but there will be someone here who knows for sure.

[buzzy--bee]

OK I'll try and answer some of this.

 

When you leave the UK you can fill in a form (think it is a P56?) and get back all your income tax, less your personal allowance. I got back about £3000 through timing the move well. I left on June 1st (when I had amassed enough income in the UK since April 6th to pay no tax on my income at all) and arrived July 3rd (after AUS tax year begins). Spent the intervening time travelling.

 

If you revenue under £10,000 in the UK you don't have to submit a tax return. So your rental property will probably not need a UK tax return, as if it is jointly owned, the rent can total £20,000 before a tax return is needed. You will need to declare this income in Australia.

 

You will only need to declare your net income on the rental property. You can also depreciate it in Australia under Australian depreciation conditions. This is fairly beneficial to you. You must keep records on incomings and outgoings to arrive at the net income.

 

HTH

 

BB