Alan Collett

On 17/04/2024 at 18:22, Krish2024 said:

@musmanasghar how you went with application? I am stuck with same question Part H Q 57. I am applying 804 for my mother who is currently in Australia. if you could let me know of any updates you received on this would be greatly appreciated. Thanks regards KK

If you are stuck on a basic issue such as this maybe it is time to pay for the support of a registered migration agent ...?

Best regards.

https://immi.homeaffairs.gov.au/visas/getting-a-visa/visa-processing-times/family-visa-processing-priorities/parent-visas-queue-release-dates

See here.

Specifically:

Do you lose your queue date when apply for the contribution aged parent visa 864.

=>   Yes, you do.   You only retain your application lodgement date if you withdraw a non Contributory Parent visa application when submitting a Contributory Parent visa application.

Ministerial Direction 103 refers.

Best regards.

12 hours ago, Vince said:

Does anyone know any UK SIPP providers that allow split accounts to accommodate the need to split UK pension money either into accounts which separate out the 25% tax free component or the growth since arriving in Australia or the exact amount needed for transfer within the 120K non-concessional contribution cap? Thanks  

I'm sure Andrew at Vista does - maybe liaise with him?

Best regards.

2 minutes ago, rammygirl said:

Oh. My lump sum ( local gov salary pension) was paid gross to me and taxed in ATO on growth. I did have to apply to have continued pension payments paid gross though. I then declare these in Aus

That's right.

100% of a pension (= recurring payments) is taxed solely in Australia under Article 17 of the UK-Aus tax treaty.

To be distinguished from the taxation of lump sums from a UK pension fund.

Best regards.

17 hours ago, Peach said:

UK taxman get's first bite of the cherry, needs to be assessed under the UK rules for CGT first. I believe that anything you pay the UK taxman will be deducted from any resulting amount the ATO decide they would like (to avoid being double taxed).

you have quite a short window to tell HMRC about the disposal: https://www.gov.uk/report-and-pay-your-capital-gains-tax/if-you-sold-a-property-in-the-uk-on-or-after-6-april-2020

CGT discount of up to 50% available when computing the capital gain in Australia.

If you claim the 50% CGT discount you can only claim 50% of the UK tax paid as a Foreign Income Tax Offset on your Aus tax return.

Best regards.

https://www.gov.uk/guidance/claim-a-tax-refund-when-youve-flexibly-accessed-all-of-your-pension-p53z

Tax repayment claim form for the excess tax deducted on the pension lump sum.

If you need help please feel able to contact me at the bdhtax.com email address below.

Best regards.

On 07/04/2024 at 15:56, Marisawright said:

From what I can see, you'd probably be liable for 20% tax by the UK taxman, because you're a foreigner being paid an income in the UK.  40% only applies over 50,000.  So maybe you could claim some back.

But don 't forget about the Australian taxman.  You'll need to declare the lump sum on your tax return as income, and it will be taxed the same as a salary.  If the lump sum plus your other annual income up into the next tax bracket, that will cost you a lot more and could be 37%.  

Unfortunately not correct.

Lump sum = taxable in the UK with the benefit of the personal allowance.   Tax repayment claim available for the excess tax deducted under PAYE following the application of the emergency PAYE Coding by the pension scheme administrators.

In Australia only the Applicable Fund Earnings are taxable (growth in the value of the fund since becoming a tax resident of Australia).   Foreign Income Tax Offset available for the UK tax paid.

Best regards.

On 07/04/2024 at 17:04, rammygirl said:

You should only be taxed in Australia < snip >

Not with lump sum payments ...

Best regards.

Hi Bill.

Does anybody know if its possible to get a calculation done and ask HMRC if its been done correctly before formally submitting it ? 

=>   A nice thought, but is not an option.

Best regards.

Sorry - what's your tax residency status in the UK?

If you're not a resident of the UK the Aus income is not taxable in the UK.

If you're a dual resident of the UK and Australia you'll need to decide where you are Treaty resident (see Article 4). and then see Article 14 to ascertain how your employment income should properly be taxed.

If you need help - email me at my bdhtax.com email address shown below.

Best regards.

1 minute ago, Ken said:

Absolutely everything to do with the double taxation system. The Double Taxation Agreement (DTA) between the UK and Australia specifically allocates the taxation of pension income only to the country where the pensioner is resident. This is different to the rules on all other income.

... unless the taxpayer is living in Australia as the holder of most types of temporary residency visa - eg subclass 870, or on a BV awaiting a decision on an 804 or 864 visa application.

Best regards.

On 16/03/2024 at 17:26, Del said:

Hi, I’m 62 and plan on closing my QSuper account and taking the whole amount as a lump sum while still in Australia and then a couple of months later retiring to the UK.

My question is will I be taxed on the cash lump sum when I arrive in the UK or is it classed as savings from my Australian bank account into a UK bank account?

Thanks for your help.

We'll be happy to send a no obligation fee quote to you for giving you a tax opinion as to strategy in respect of drawing your super monies.

If of interest please feel able to ping an email to me at my bdh Tax email address.

Best regards.

Foreign Service Relief in the UK might work to your advantage.

We'll be happy to review this and to report to you.   See the bdh Tax email address below.

Best regards.

Work out the tax based on just your Aus salary.

Work out the tax based on Aus salary plus contracting income.

I use www.taxcalc.com.au for this sort of exercise.

You might use the extra income to make a personal super contribution?

Best regards.

1 minute ago, Ken said:

I've come across many companies that it is almost impossible to contact. Wise isn't one of them. When moving larger sums, I'd want the instructions in writing, and I definitely wouldn't want to have to talk to someone.

Really?

Each to their own.

The companies I use all put transaction instructions in writing after speaking with them.

Onwards!

30 minutes ago, Ken said:

No, Wise don't currently offer stop loss orders. If your funds don't arrive then obviously you contact Wise. But a wait a few minutes before you do so.

Good luck trying to contact Wise - based on what I've heard.

I want people I can talk to if I'm moving larger sums.

I'll happily use Wise for moving £5k.

Not for £50k or more.

Best regards.

3 minutes ago, Ken said:

Because it's cheaper to do the same thing with Wise. It's called an Auto Conversion. The rate's already over $1.95 ($1.95142 at the moment) so if I had one set for $1.95 it would already have gone through, but I've got one at $1.96 waiting. And yes, they do seem to like to go through at 1am.

Thanks Ken.

And the points about a stop loss order - and who to contact if your funds don't arrive?

Best regards.

Why do you not work with a forex company with a private client desk and a person with whom you can discuss your wishes and how they can help.

I wouldn't use Wise if transferring £250k, even if it was in instalments.

I would say to my chosen forex company if the exchange rate gets to (say) A$1.95 I'll sell (say) £50k.

If it gets to A$2.00 I'll sell another £50k.

etc etc

Similarly if the rate drops to A$1.80 I'll sell £50k.   I think that's called a stop loss order.

And if it gets to those rates at 1am in the morning I won't get annoyed because the forex company will do it all for me.

Plus - who do you talk to if the funds are lost when being transferred.   I've heard of that happening ...

Each to their own though!

Best regards.

40 minutes ago, mark0 said:

Well I suppose we could pay the 2nd VAC, but we would still have to wait until she receives confirmation of enrollment in Medicare before Immigration will approve her visa so there doesn't seem much harm in waiting to both at the same time, unless I'm missing something?

Take our private heath insurance with a deferred commencement date.

Pay the PHI premium for 3 months of cover.

Send confirmation of this (a letter from the insurer) to the Department.

Visas should be granted.

Then enrol in Medicare under the RHCA.

Best regards.

I agree - particularly as the tax take to GDP ratio is 30% ...

Best regards.

Albo didn't qualify his replies when asked repeatedly pre-Election (and post) about the Stage 3 tax cuts.

An opportunity has been missed to simplify income tax, which is not a good thing.

Flattening out the tax rates and increasing thresholds would have simplified the tax regime, and sent the right message to those with aspirations.

If the Government wants to extend relief to what is being described as middle Australia it should have cut expenditure to fund a reintroduced Low and Middle Income Tax Offset, while leaving Stage 3 intact.

And revisited CO2 targets - much of the cost of living crisis comes from the increasing cost of electricity and gas.   We export coal and uranium to countries that use then to power their industries and don't use these resources ourselves.   How ridiculous is that?    We should have close to the cheapest power in the world.

This Government has exacerbated the cost of living crisis, which impacts the poorest in society disproportionately.

Onwards (as always)!

10 hours ago, Marisawright said:

He's adjusting the benefits of the tax changes so that lower-income people will get more in their pocket.  Good for him, they need it. Labor should never have agreed to support the Stage 3 tax cuts in the first place, it went against everything Labor is supposed to stand for. 

Ultimately - and ironically - parties of the left almost always don't look after their own constituencies economically.

They aren't good managers of the economy. and the less well off suffer most as a result.

The present Federal Government here in Australia are no different.

Best regards.