Alan Collett

On 12/08/2022 at 08:16, jhog90 said:

My partner and I are applying for a 309 visa from the UK. We went back and forth about engaging the services of an agent to help us (the cost of living crisis has us watching every penny) and eventually decided to make the sacrifice and go with an agent. We began working with our agent in mid May of this year. We still haven’t submitted our application. It feels really slow and I’m just wondering how long have other folks’ process been from starting with an agent to submission? Of course everyone’s case is different but for a bit of background my partner and I have been together for 4 years; living together for 2; have a son; and have plenty of things to indicate we’re in a couple- multiple joint bills; multiple joint back accounts; joint purchases; correspondence from HMRC, the NHS, the local electoral roll to both of us; individual bank statements; photos; and all the standard ID stuff. 
 

TIA for any insight

Speak with the agent - I fear there's not really a lot we can do on a discussion forum ...

Good luck!

5 minutes ago, LindaH27 said:

804 could possibly be discontinued at some point given it costs Australia taxpayers a lot of money so perhaps that’s why the agent recommended 864 instead of suggesting going for 804. Some visas in the  past have been discontinued retrospectively 

In my view there's not a one size fits all response to this question.

There are clearly benefits of having permanent residency - but it comes at a cost. 

Personally I think the 804 visa pathway is likely to close as an avenue for new applicants - 360,000 people in Australia on Bridging Visas at the last count (and increasing) is clearly not sustainable and brings the system into disrepute.

Best regards.

5 hours ago, ramot said:

 

You don’t have to be in UK to sell a property, it’s completely doable from Australia.  Be warned The time frame for completion on a house sale is ridiculously long in England, we are into the 6th month from date of sale agreed, to going complete this week. It’s a 1 bed flat, no mortgage, no chain, the solicitors are a slow motion joke, it’s an absolute nonsense. 

Yes, with a Power of Attorney signed in favour of the solicitor documents pertaining to the sale of the property can be signed in your absence.

Check also whether there's a need to file a Non Resident CGT return with HMRC within 60 days of completion: https://www.gov.uk/guidance/capital-gains-tax-for-non-residents-uk-residential-property#overview

Best regards.

5 hours ago, Marisawright said:

First, ask the agent to explain why the 864 is better than the 804.   If you apply today, you will be waiting at least 15 years for your 864 visa.  If you are still fairly young, then that may still be worth it.  However, consider that you'll need to pass a medical at that point, and if you fail that, you'll have to go home.  What age will you be, how confident are you that you'd pass the medical at that age, and how would you feel having to set up from scratch again in the UK at that age?   Whereas if you go for the 804, you'll die before the visa is granted so you'll never have to face the second medical (the first one is a few years after application).

<snip>

 

Those who have applied for an onshore visa under subclass 804 or 864 and who fail to meet the health requirement can reasonably expect to be able to stay in Australia via a subclass 602 Medical Treatment visa ...

Best regards.

5 hours ago, laf said:

Thanks for your reply.  Yes I am in the UK, moving from the London area. 

Thanks for confirming the interest rates are similar to the UK and it looks like many institutions only pay the advertised rates up to a certain balance, lower than the amount we will be depositing.

Unfortunately the exchange rate is out of our control.  I'm constantly monitoring it and the outlook looks bleak.  It will be the biggest gamble ever deciding whether to move it straight away.  We can only hope for a further downturn in property prices to offset our exchange rate loss.  

Are you speaking with the private client desk at one or more of the specialist forex companies?

If you'd like a name and contact details please send a private message to me (click on my name to the left of this post).

Best regards.

The other issue to be managed is the risk of the property being sold to meet the claims of creditors in the unwelcome event of the child getting into difficulty financially ...

Legal advice is best taken if this is being contemplated.

Best regards.

On 28/07/2022 at 17:28, LindaH27 said:

Wouldn’t that give rise to a capital gains tax problem when they come to sell further down the line eg parents die, owner needs money, divorces  etc?

Yes, that's what I say to those who ask about the strategy, but the immediate concern is the additional Duty and FIRB fee.

The CGT liability is a future cost, which will only arise when the property is sold.

Best regards.

2 minutes ago, LindaH27 said:

Thank you Alan. Hopefully there will be a further increase in the upcoming October budget. I note you think the non CP visa allocation (103 & 804) will drop to 500. Obviously it doesn’t really matter for 804 as people know they are not likely to ever get their grant owing to the current long wait but it’s likely that even more aged parents will take this route in future given that it’s so much cheaper and they can wait onshore  so it’s going to mean a lack of revenue for the govt and surely can’t be sustainable. I hope it doesn’t mean increasing the VAC for CPV applications. I know at present the second VAC is locked in at the price at the time of application. Do you foresee any change in this ? 

Hi Linda.

Whether the non CPV number is 500 or 750 for 2022-23 is arguably of little material significance.

If the new Federal Government is serious about limiting the significant number of BV holders in Australia (about 360,000 currently - a ridiculous number, IMHO) it will close off the 804 visa pathway - as you say this pathway isn't sustainable and brings the parent visa program into disrepute.

This is purely speculation on my part, but there might be an announcement in this regard around the time of the October 2022 ALP Federal Budget.

As ever, my recommendation is that intending visa applicants submit the visa application ASAP, while the pathway exists.

Best regards.

https://www.gm-parent-visas.com/alans-update-on-contributory-parent-visa-processing/

Might be of interest to some on this thread ...

Best regards.

On 27/07/2022 at 05:58, Ausvisitor said:

We have a company in the UK (that is basically dormant since moving to AUS in Jan).

There is a positive bank balance in the company (enough to be worth not just leaving it there) and wondered what is the best (least tax) way to extract that.

The income in the company has had all UK corp tax paid on it (so it is profit) so wondering what the best way to wind it up and minimise the taxation due in UK and AUS on the disbursement

Will most likely need some actual help doing it but just looking at options right now to work out how to proceed

Distributions in the form of dividends or from a liquidator on a winding up are likely to be taxable in Australia as income.

I'd need to look at the accounts and your personal income tax situation to advise and comment more fully.

If you're interested in a freebie chat and a no obligation fee proposal please complete the enquiry form at www.bdhtax.com

Best regards.

On 27/07/2022 at 19:33, Road1 said:

Another option is to liquidate the company and if you qualify for business asset disposal relief will pay 10% capital gains tax on the profit. There are some costs for this with the liquidator and various disbursements, but can be effective dependent on personal circumstances.

... but the OP is resident in Australia.

You are talking about the tax position for UK residents.

Best regards.

3 hours ago, BrisSyd said:

Hello, thanks for a really useful thread. We are thinking about selling our house in UK. We bought it in 2010, lived there for two years before moving to Oz. It was then rented out from 2012 - 2018. We returned to UK for a year in 2018-19. The property was our main residence for a month and then we rented it out again as we had to move cities due to work in UK. We returned to Oz in early 2019 and it has been rented up until now. We bought a place in Oz in 2020. If we decided to sell UK place would we eligible for 6 year rule for 2 periods up until we bought our place in Oz in 2020? Many thanks

Not sure a month is sufficient to re-start the 6 year clock.

If you think you'd like this considered more fully by way of a tax opinion please feel able to send a private message to me.

Best regards.

Feel able to ping a Private Message to me with your contact details if you'd like a quick freebie chat - I'm in the UK at the moment (on a plane back to Australia on Weds 27/07).

Best regards.

On 29/06/2022 at 10:25, Paul Dhaliwal said:

Hello, i am new to this thread. My mum is here in australia with me on 600 visitor visa. There is no conditions on her visa. I am looking to apply for 143 visa. I am just wondering which is the best pathway that she can stay with us all time via Bridging visa or other means. Based on your experience can you please guide me, what pathway should i follow. Thank you

How old is she, Paul?

Best regards.

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

The queue date is the reference point.

Best regards.

4 hours ago, JMcKie said:

Any rough timeframes?

2 to 4 months is what we're seeing for UK based partner visa applicants where the application is close to being decision ready.

The key to a quick outcome is having the application decision ready.

Best regards.

On 13/06/2022 at 00:17, Jiba said:

do we get any notification when a queue date is assigned to the application? From the latest updates on website, The queue date should have been assigned to my application but I have not receveied any communication from department.

Is there any email address I can reach out for an update to the department for 143.

The queue date will be assigned once the Parent Visa Centre is happy you have a valid application and have submitted all documentation to validate the family relationship.

And then you'll be advised by letter attached to an email.

Best regards.

https://www.ato.gov.au/Individuals/Income-and-deductions/In-detail/Income/Foreign-income-exemption-for-temporary-residents/

ATO commentary on the exemption for tax residents of Australia who are temporary visa holders ...

Best regards.

The subclass 870 visa is a temporary residency visa, so I would expect (non-Aus source) pension income from the RoI to not be taxable in Australia and to remain taxable in the RoI.

It certainly works that way for those on 870 visas with UK source pension income.

The tax situation changes though once permanent residency has been secured.

Best regards.

Some of us are tax qualified and work closely with financial planners - so clients can get the holistic advice they often require to secure optimal outcomes.

Best regards.

2 hours ago, Marisawright said:

....however the whole amount (18,000 GBP) will have to be declared as income in Australia.  It's treated as if you suddenly earned an extra 18,000 GBP on your salary that particular year.  It just gets added on, so you'll pay a high tax rate on the whole amount.

No, that's not necessarily right.

Professional advice should be sought on strategy here.    IMHO.

Best regards.

I'll answer question 1: if you withdraw the 103 when lodging the 143 application the lodgment date of the 103 visa application will be used when deciding when the 143 application should be allocated for processing.

So if the 103 visa apploication was lodged in or prior to June 2016 the 143 application should proceed quickly to requests for health and character.

Best regards.

I'll answer question 1: if you withdraw the 103 when lodging the 143 application the lodgment date of the 103 visa application will be used when deciding when the 143 application should be allocated for processing.

So if the 103 visa apploication was lodged in or prior to June 2016 the 143 application should proceed quickly to requests for health and character.

Best regards.

On 21/05/2022 at 15:10, imarcq said:

Hi, thanks for your reply. I was fully resident in the UK for 7 years, and was still resident for tax purposes when the property was sold. I haven't yet fully informed HMRC that I've permanently left, just changed my address when I called them to sort out my tax codes on two small pensions. I was given a link by a HMRC "Tax Technician" to do this, but he said there was no immediate rush. Thanks again. Mark.

UK pensions are solely taxable in Australia if received when you are tax resident in Australia, as per Article 17 of the UK-Australia Tax Treaty.

So make sure no tax has been/is being withheld from the UK pensions from the time you became tax resident in Australia again.

A NT (No Tax) PAYE Coding should be in issue in respect of the 2 x UK pensions.

Best regards.

2 hours ago, Ken said:

According to his original post he didn't return to Australia until May (several years after moving to the UK) with the sale having completed in April. There doesn't appear to be any reason to believe he was non-resident in the UK when the property was sold. Nor does there appear to be any reason to believe he was resident in Australia so Australian CGT does not come in to play.

Noted - thanks for clarifying, Ken.

Best regards.