UK company and Australian company and home loans

Has anyone had any experiences of owning a company both in the UK and Oz? in relation to share ownership. I am a Director of both and its near as damn impossible to get a home loan at the moment for a construction build rural without showing Oz income (my Oz company is new so no turnover for several months). I understand the Oz company could own the shares of the UK company thereby showing Oz income. Its a tad complex and not my area...I am PR in Oz and likely to be non resident UK for 2017/18.

Thanking you!

Sorry, but I don't think that's going to help much. What the banks generally want is two year's of the Australian company's accounts and tax returns. Since the Australian company is new it can't have accounts (or tax returns) from before it existed (even If the income was there in the UK company). One recommendation I can give you is to try ANZ. Unlike the other banks they'll look at just one year's history rather than insisting on two.

To ensure the first year's accounts are healthy then yes by all means put the UK company under the Australian company. Note that you may need to actually pay a dividend from the UK company to the Australian one before the end of the Australian Tax Year (30th June) to ensure the income appears on both your financials and your company tax return to get the Bank to accept it. This may not be the best solution for you to minimise your tax bill but is based on your priority of obtaining a mortgage.

Thank you Ken for your reply. I note Bendigo require:

"The most recent business & personal tax returns (for sole trader, company directors and/or Trust beneficiaries) for a full financial years trading together with the notice of assessment and supporting trading financials, together with a copy of the current 12 months integrated client account statement that shows all taxation requirements are up to date and in order."

Not sure if that means one year or two....I know its going to take some time to show the income which is fine and I have Oz operations under way already so by the end of the year there should be some trade, as long as I can secure a loan at some point all correctly. It does not look like this foreign income policy is going to change for a while....:arghh:

Could the new Australian company not fully acquire the UK company, in which case the foreign income becomes the newco's income and you can prove historic trading?

Could the new Australian company not fully acquire the UK company, in which case the foreign income becomes the new co's income and you can prove historic trading?

Do you mean more than just the shares? (sorry, my work is not within this field so I get easily confused)

I'm not sure the banks will look at historical trading of the UK company at all, only from the date the AUS company started trading/got registered etc.

Anyone moving to Oz with UK income needs to follow this really carefully if they want a home loan. Every door has been shut on me. Disappointing as I've spent a small fortune on residency, I only require a 50% LTV home loan so fairly low risk (I would say!) and have 4 years full HMRC account etc. Maybe I should go to the Court of Human Rights with the Australian banking industry...,my right to a home and all!

If the Aus company owns all the shares of the UK company, then the UK company becomes its subsidiary. If you follow it backwards, then UK company dividends are payable to the Aus company, and the Aus company dividends are payable to you. I suspect the hesitancy with the bank is that the UK company never reports a profit (e.g. you remain an employee of UK company and pay yourself a salary with all profits which remains offshore) and so no money flows into Aus and so your ability to meet the loan repayments could be considered a higher risk. You'd need to demonstrate this isn't going to happen though by showing money flowing out of UK into Aus. I saw somewhere on this website about a member offering free financial advice - I'll see if I can find that link for you as my experience in this sort of stuff if very broad brush and as they say the devil is in the details.

Much appreciated A, that sounds logical and understandable. I need to see if CGT is applicable to share transfer too. I don't think it is from what I understand.

Looks like the kind soul who volunteered got overloaded and is on hiatus http://www.pomsinoz.com/forum/showthread.php?t=238040&page=4

I'm definitely not an expert on taxes, but I would have thought CGT would only become payable if there was a cash gain. This seems to be neutral. The shares could be sold to Aus company at their nominal value (can't trade below that) so hopefully that is low and so there is no material taxable gain.