Lostlily

My daughter is an Australian citizen, she is applying for a partner visa for her spouse. The family live in the UK. Can anyone please advise, if she applies for citizenship for her two children, both under 10. Do they need to have medicals or is it just pretty straightforward. Thanks to all

Yes all of our assets are in Australia, the executor is in Australia, but several beneficiaries are in the UK. Everyone has been helpful, I have read the links. My confusion arises from previous information. A couple of years ago, we considered buying a modest property in the UK to use for part of the year, but in the end we backed out because we were told by our old accountant there and from our own research that if you are from the UK, spend more than 3 months a year there and/or have a rental or purchased property available for your use you will be considered domiciled in the UK. Then all of your worldwide assets are treated as taxable in the UK. The other thing is that although tree is no IHT in Australia, assuming we were still domiciled here. Apart from certain exclusions CGT appears to be payable when the assets are sold, so I assume that this is deducted from the estate before money is divided up?

Thanks for your help, but as far as I can work out, this site really only relates to the UK. I have been going round and round in circles trying to establish the legal requirements of beneficiaries in the UK from Australia. I have never been very happy consulting "tax experts" unless I understand the rules myself. It seems very unclear to me......

Thank you will do

Thank you both for your encouraging answers, do either of you guys have any link so I can confirm this information?

Hi everyone, I am hoping that someone can help me here. I am usually pretty savvy on financial issues, but am stuck on this one. My husband and I have been living in Australia for 18 years. We have dual UK/Aus Citizenship. As we are getting on a bit, we are wondering about inheritance tax for people included in our will in the UK. I know there is no IHT in Australia, but on reading up on this recently, CGT seems to almost be a replacement for it? But my main query is in regard to portions of our estate left to people in the UK. Will they be liable to UK IHT or CGT. We have some family here, one daughter who will be the executor of our will and I don't want to leave her with a lot of unnecessary red tape. We dd think of buying a small property in the UK for holidays etc, but it got so very complicated as then we would be domiciled back in the UK for tax purposes. Any help or advice would be appreciated. Thank You.

Hi Marisa, I have not been on this page for some time, but I do remember your posts about how much you were looking forward to returning home. Could I take the liberty of asking how it went and why you have decided to come back to Australia?

Actually I was very keen to move to Australia. For several years it was a great adventure. Two things changed it for me. My youngest daughter went back, I felt as if I had lost a limb, although of course I gave her my blessing. Then due to anxiety attacks I had to give up my business. I can no longer drive due to anxiety. My parents suddenly (so it felt) became elderly and I feel they are missing out, as I am as well. I am so bloody bored here. I go back to the UK every year for a long holiday, I always feel healthier and happier there. I wouldn't wish my position on others, so I guess what I am trying to point out is that things change, of course, and as you get older your needs and priorities change as well. THINK long and hard about the future before making the big leap to emigrate.

Sorry, I must disagree with this. Family is not just Mum Dad and kids..... After being here for 17 years and very luckily spent Christmas day and Boxing day, pretty happily.... What the hell do you do in the next month? Some may think I am lucky having one daughter and 2 grandchildren here and I am so grateful of course. BUT my parents are in their 80's, my younger daughter left to go back to England 5 years ago, I have a granddaughter there who I miss dreadfully. My daunter is 8 months pregnant in England. I have 4 stepchildren, one of which is expecting twins in the next month. All of our dearest friends, siblings, cousins are there and we are here. I am in the fortunate position to be able to fly to England whenever necessary. Which is the only thing that keeps me sane. But I would like to perhaps give people a reminder, that a bigger house, a pool and the beach 200 yards away can never make up for the loneliness of missing your roots. Popping round to see Aunties and Uncles, many whom I have lost in the last couple of years. Australia is a beautiful country, but it is very isolated. Please appreciate what you have in the UK, before breaking up your family, in my opinion it is not worth it.

Follow your heart, it sounds as if it is in the right place

I think that is a very insensitive comment to make. The poor woman is in pain and you are judging her very unfairly. Some people need extended family networks to feel happy. I could turn this comment on it's head and say he is valuing her less than zero. But I am not that judgemental.

I feel for you so much I too yearn to go home and in the past have posted on here of my sadness. Some people were very kind and understanding, but like you many comments seemed to be horribly judgemental. My situation is also complicated, we came out here 15 years ago with two grown up daughters. For years I was fine and hubby has always loved it here. But my youngest daughter's marriage split up and she went back to the UK, she now has a beautiful daughter. My other daughter stayed, has two children with an Australian and she too is dreadfully homesick for all of her extended family and especially for her sister. There is no solution for us now, I couldn't leave my oldest daughter as she would be broken hearted and my youngest daughters partner will not move here. And before everyone starts ranting on at me that they are adults blah blah. I have heard it all before and although they may be adults we are so close and miss each other dreadfully. So if you are looking for advice, I think if I were in your situation I would go back now. If your husband put's his own happiness bafore the family unit he is selfish IMO. You came here asking for help and advice and I am so sorry that many people made you feel much worse. Good Luck

Hi Marisa, Have just been googling and came up with this page from so called"Experts" who state you can only have one domicile at a time. The plot thickens.....http://www.ukexpat.net/tax-information-topics.php

That is interesting, I didn't realise that. I have been thinking and thinking. My latest idea is to help my English daughter out with some money to move to a larger house, at the moment she is considering extending her mortgage to make a loft conversion and perhaps build a garden room for extra accommodation for when any of us come over. But I know she would prefer to move to a larger house, so why not give her part of her inheritance early? It would all be in their names of course and would solve a lot of problems as if we bought a property, apart from the expense it would be empty for 1/2 the year etc. We did try to do this a couple of years ago, but unfortunately we were led astray as the house had massive subsidence problems and it was very traumatic. But I think we are all over the shock of that now. This could be the answer for us and I need to get off my butt and find something positive to occupy my time while I am here too. Thanks for your help Marissa and good luck with your plans

Thank you Marissa, this is very helpful information which may help us with our dilemma But do you know if this rule would still apply if we bought a small property in England???

How did you come by that information i.e. the 6 months thingy? All I keep coming up with is that if you spend 3 months pa over 4 consecutive years you are domiciled and resident in the UK. Therefore all your worldwide income is taxed there....Especially if you buy or lease a property there. I am getting very confused about all of this, would love some help if anyone knows more Hopefully this link will work better, it is very interesting http://calculators.ato.gov.au/scripts/axos/axos.asp?CONTEXT=&KBS=residency_leaving.XR4

No I don't think he would consider it in a million years lol. But you have made some good points and I did have a bit of a chat with hubby this morning, he would obviously prefer to stay here. But at least he did listen to what I was saying. I am so scared of making decisions. Particularly as the last one to move over here hasn't turned out too good.

Yes I agree, heating would be a major expense. I need to sit down and do some realistic budgeting and talk nicely to my husband as well

Well Well, I do not consider that Australia has "given me a nice standard of living" I have been totally self sufficient, even taking over a business that employed about 10 Australians! That certainly did not improve my mental health! I was astounded at the lazy (laid back??) attitude of these people, I was always ready to "get up and go" for opportunities, but they were lazy, stubborn and racist towards me. Now let me explain, I am not a bossy type of boss and was more than generous to them, but they are a different species of people than I had been used to dealing with in England. Where we also had a business and 99% of our ex staff are still some of our best friends. They have all had it too bloody easy here and their attitudes stunk! We have never taken a singe cent from the Australian government, that is not our way (although I have no problem with the genuinely needy getting this) We have worked our butts off since we arrived. I can now see why the government are crying out for immigrants, as they have a totally different work ethic to most Australians. You would not believe how many I have met who are on compo, for pathetic reasons. They are a different species, I would like to change the label "laid back" to downright lazy! Obviously I am not tarring every Australian with the same brush, but I was working in a semi rural area, which did contain a lot of freaky people. They made my life such a misery, due mainly to their own feelings of inferiority as most of them had never clawed their way out of the little holes they were brought up in and considered anyone else as a personal threat.

This may work better? Accessibility Languages Legal Database Tax topics A-Z About ATO This doesn't make a lot of sense, will try again later In Individuals Advanced Search [*=center]Home [*=center]Individuals [*=center]Business [*=center]Non-profit [*=center]Super [*=center]Tax professionals Tax file numberActivate sub menu Income and deductionsActivate sub menu Lodge your tax returnActivate sub menu Make a paymentActivate sub menu SuperActivate sub menu Your situationActivate sub menu Tax topics A-ZActivate sub menu Activate print options Home Individuals> International tax for individuals> Going overseas [*]International tax for individuals Work out your tax residency Coming to Australia Going overseas When you leave Australia Working overseas [*] Investing in Australia [*] Investing overseas [*]In detail Applying for a TFN - required documentation Australian income of foreign residents Capital gains Foreign income of Australian residents International agreements Other languages Residency Super [*] Previous years When you leave Australia If you have been living in Australia, you intend leaving Australia soon, or you have recently left Australia, there are things you need to do to get your tax affairs in order. Will your tax residency change? If you remain an Australian resident, you must lodge an Australian tax return and declare your worldwide income - both assessable income and exempt foreign employment income - even if tax was taken out in the country where you earned the income. If your residency status changes there will be a number of changes in your tax situation. Lodging your tax return early If you are leaving Australia permanently and will leave before the end of the income year (30 June), you may be able to lodge your tax return early. Lodging your tax return from outside Australia If you will continue to be an Australian resident while travelling overseas, you should lodge your tax return during the normal lodgment period (1 July to 31 October). The easiest way to lodge from overseas is online using e-tax. Capital gains on your assets If you leave your home in Australia temporarily you may be able to continue to treat it as your main residence for up to six years for capital gains tax purposes. If you cease to be an Australian resident, you may become liable to pay capital gains tax on some of your assets. Private health insurance and the Medicare levy surcharge If you cancel your private health insurance while travelling overseas, you may be liable for the Medicare levy surcharge if your income exceeds the relevant threshold. Higher education loans If you have a higher education loan debt it will continue to be indexed each year. You can still make voluntary repayments from overseas. Departing Australia superannuation payment Temporary residents who are leaving Australia permanently may be able to claim their super. New Zealand citizens and permanent residents of Australia are not eligible for this payment. End of attention Higher education loans Will your tax residency change? Capital gains on your assets Lodging your tax return early Private health insurance and the Medicare levy surcharge Lodging your tax return from outside Australia [*]Last modified: 24 Dec 2013QC 33234 Online services Log on as a: Individual Business BAS Agent Tax Agent Access Manager Super clearing house RegisterSystem maintenance and issuesAccess managerAbout online services Forms Permanent migrants or temporary visitors - online TFN application Certificate of payment PAYG foreign resident withholding variation 2014 TFN - application for individual living outside Australia Timor Sea Treaty - Joint Petroleum Development Area instructions 2013-14 Tax return for individuals 2013-14 More forms and instructionsArrow button Tax rates and codes Calculators and tools [*] Print publications [*]Getting it right Your rights Tax planning How we check compliance Correct a mistake or dispute a decision Tax evasion and crime Report tax evasion Consultation Law, rulings and policy This doesn't make a lot of sense does it! I will try again later......

Oh My Goodness, I do remember your story from earlier posts. Completely agree with you about your poor daughter, that is a totally (but not uncommon) situation. How terribly sad My only thoughts about France were that perhaps as it is so near to England, one could enjoy a nice lifestyle there and believe me it is very cheap to live there too. Added to that, you could get back to the UK very quickly and hopefully your family would visit too. But NO it is not England! But it does sound as if you have a much better balanced view (emotionally) of letting your kids go than I do. I think I am too emotional and needy.

Hey Marissa, I have been doing a bit more research, see my last post

I have just been doing a bit more research and I came across this, if it is any help to anyone who is UK expat and wishes to spend some time there....When%20you%20leave%20Australia%20%7C%20Australian%20Taxation%20Office.webarchive Although this does seem to be very contradictory to the advice on the Inland Revenue page, they just try to grab you by the coat tails as to where your father was born i.e. domicile. Although when I spoke to my UK accountant about this 3 month rule blah blah, he said they simply do not have the resources to follow this up and the only time it comes to their attention is if you purchase a property in your own name in the UK???? Would be interested in advice others have received. I hope this link works, if not please let me know.

I do feel for you, it is so sad. Yeah architecture hah! They don't know the meaning of the word. Here in Perth 30 years seems to be the time to knock your house down, how ridiculous. I am not buying into any of that nonsense. The exchange rate is really bad at the moment, but I guess it could get better? I have been dreaming and researching properties in France, you can pick up some serious bargains there. We were hoping to spend 6 months in Aus and 6 months in uk, but we would get buggered tax wise and don't think we could afford it. So thats why the French idea came up, but that is probably a silly idea as we still wouldn't be near our family and I couldn't bear to leave my daughter here either. If you could retire back to England how would you feel about leaving family here? Just interested in others perspectives really.

How long have you been here in Australia? How I miss the lunches at the pub in England. You can still get a massive roast dinner for about 6-7 pounds. Yes and all the beautiful country footpaths and the open gardens and National Trust buildings, I could go on and on. But it just makes me more depressed. I am so sorry for your situation. Yes you are right, when you are younger it all seems like a great adventure, I think for us it was a mid life crisis lol. But things are very different here now and I have many elderly relatives who are lonely etc in England who I would love to visit and give them a hand. I know I could become a volunteer here, but that is not the same as helping your loved ones is it.